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S MN | Kind of depends on what interest rate your current mortgage is. If you have 150,000 borrowed at 5%, it is costing you $7500/year .... $20/day for the interest- only you and your banker know your specifics . If you have accumulated "after tax" income in your account, that $7500 is yours to put toward a future farm downpayment when that opportunity arises. Your accumulated funds are not gone if you pay down your mortgage- you have just moved it to a different column on the balance sheet. I find it helpful to look at interest in terms of what it costs per day, like in the example above- and compare it to an hourly job. Somebody else is getting 2 hrs of my wage if I have a $10/hr "after tax" job. There are probably no low risk liquid investments that would pay better than paying down your mortgage... just make sure it is after tax money that is in your account. | |
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What to do with cash
