Show HN: Overpay mortgage or invest? I built a calculator to help you decide
showloan.infoHey. I built a loan (mortgage) calculator that lets you compare the savings from overpaying your loan with the potential profits from investing those extra funds.
It will help you answer a key question: is it smarter to overpay your mortgage or invest the extra money? See the hard data and make smarter financial choices!
The comparison is simple:
1. Both the overpayer and the investor have the same mortgage. 2. They both spend the same amount monthly. 3. The overpayer overpays the mortgage installments. 4. The investor puts that extra money into investments.
Who comes out ahead after the mortgage is paid off? Who has more $$? See the comparison at https://showloan.info
As a note, on the site you frequently misuse the word “interests” instead of “interest” without S.
Thank you! Obvious mistake. To be honest, I'm not English native and I struggle to find balance between formal/informal for such kind of app/content :D "Installment" sounds so exotic for me :D
Of course, there's the matter of risk over time. We're very close to paying off the house we bought in 2009. For much of that period, regular bank interest was basically nothing, so it was clearly better to pay the mortgage than leave the money in the bank. A mortgage is a bond, so the 'return' on that is basically fixed and predictable. Other investments that might do better are less so. So there's a choice there. Over the same time, a broad index fund might do better, with acceptable risk, but again, there's no guarantee. We are, however, looking forward to being able to live more or less rent-free.
Yeah it's a matter of timing and security/stability game. To be honest, I didn't consider extra payment as an option for myself, but in current circumstances it really makes sense: not a risk-free investment alternative to 8% mortgage :) But when interest rates will go down, it can change. With a tool I just wanted to show numbers - for sure there is more to consider, but it should help to have a insight to bare numbers. Thanks for comment!
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