conversation: User (whosawmike): "My wife and I just sold our first home. We bought it as a foreclosure and rehabbed it. This gave us a decent amount of money when we closed. We were able to put 20% down on the new house, pay off our car loan, and pay off the last of my wife’s student loans. So now, our new mortgage is our only debt. \n\nWe have budgeted $500 a month to either pay down the mortgage or invest in retirement. If we put that towards the mortgage, we can have it payed off in 12 years. \n\nWe are 30 and 31 years old and are already investing in our company 401ks and $100 a month into a Roth. \n\nWhat should we do with this $500 a month and why?\n\nTLDR: \nTo pay off the mortgage or beef up on retirement; that is the question. \n\nEdit: Some more info... interest rates have gone up. My wife and I both have credit scores over 800 and got 4.5% interest on the new mortgage. "
  User (whosawmike): "Thank you for the responses. It is surprising to me that everyone is saying retirement.  I guess that I thought that the security of having no debt would outweigh the gains of putting the money toward retirement. "
  ivegotgoodnewsforyou (ivegotgoodnewsforyou): "Security comes from having access to money when you need it. When you pay down your mortgage you are putting money into an illiquid investment. \n\nLose your jobs and you'll find it difficult to do a cash out refi, but you can always pull the principal from your Roth without penalty.  "
  