← Back to The Ledger

Mortgage Math in 2026: When to Pay Down vs Invest

With mortgage rates near 6.5%, the old 'always invest the difference' advice needs an update.

The traditional argument: stocks return 7% real, so paying down a 4% mortgage is a bad trade. At 6.5%, that math gets uncomfortable. A guaranteed 6.5% after-tax return is hard to beat with anything that lets you sleep.

Split the difference. Keep retirement contributions maxed. Direct extra cash flow toward the mortgage. You buy guaranteed return and optionality at the same time.