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The clipping this text was read from
The clipping this text was read from

If your mortgage is 15 or more years old, it’s tempting to clean up the debt if you have the money available. But before you run to the bank for the money, take a second look.

Chances are you might be better off to keep the mortgage and put the prepayment cash in savings or securities. With a mortgage that is old, the interest on the debt and the interest you'd get from the savings would probably be not too far apart. With the right investment, you might even get a higher rate of return. The advantage is that you have a cash reserve while still earning almost as much, if not more than you would save by paying off the debt.

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