April 21, 2021

Is it time to pay it off or invest?

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With interest rates at historic lows, clients are curious what they should do about their mortgage.

Is now the time to refinance? Should you pay off that 30-year note? Or is it better to invest in the stock market?

The answer is: It depends.

There are a lot of factors to consider when deciding whether to pay off a mortgage or invest. The right choice for you depends on your situation, investment goals, expectations, and time horizon, among other determining factors.

What are your expectations on investment return and, by extension, risk tolerance?
How much do you have left on your mortgage? What’s the interest rate and term? Is it a new mortgage for a significant amount, or is it a smaller amount toward the end of the term?
What are the tax implications of paying off the mortgage? Deducting mortgage interest plays a role in the decision.
Your comfort with the amount of debt you are carrying and how that fits into your overall planning must also be taken into account.

The truth is, one-size doesn’t fit all. A decision like this requires a significant amount of information and thoughtful consideration. Maybe you weighed this question before. If you haven’t thought about it, is it something you should consider now? Through proper modeling and analysis, we can help you determine if this is something you should pursue.


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Donna M. Feder, CPA
Partner/ Woodland Hills
DK Wealth Management LLC
21600 Oxnard Street, Suite 2000
Woodland Hills, CA 91367

Tel 818-385-0585
[email protected]

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Thane F. Kelton, CPA
Partner/San Diego
DK Wealth Management LLC
4225 Executive Square, Suite 900
La Jolla, CA 92037-1485

Tel 858-642-5050
[email protected]

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Kristopher Lindley, CFP®
Financial Consultant
DK Wealth Management LLC
12555 High Bluff Drive, Suite 210
San Diego, CA 92130

Tel 619-550-4619
[email protected]

DK Wealth Management LLC | La Jolla | University Heights | Woodland Hills | Beverly Hills

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