I got this question from friend -

He bought house last year with around 300K Mortgage & interest is prime minus 0.7

He got bonus at his workplace & wants to pay extra towards Mortgage

Is that a good move ?
If he don't pay extra, that amount will remain in bank with hardly any interest

Is there any other option, investment point of view ?

I suggested him to pay towards Mortgage

Any Suggestion ?

Pay towards mortgage principal.
KISS rule.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

I would do that even though the rate P-0.7, Hhhmm mine is much higher so it makes absolute sense to me.

Quote:

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Originally posted by pratickm

Pay towards mortgage principal.
KISS rule.

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM