In other words, you can’t predict with certainty if the market will be up 30% or down 20% by the end of any given year. Your mortgage is fixed, however, and paying it off has a clear measurable return.

But there’s also a good chance your mortgage deviates from the current national average. If you locked in your home loan a few years ago and secured a 3% or 4% rate for 30 years, the spread is wider, which tilts the calculation in favor of stocks.

Ultimately, you’ll have to consider your personal finances — and you might want to look beyond the spreadsheet to find the right answer for you.

Read More: Here’s the average income of Americans by age in 2026. Are you falling behind?

Reasons beyond the spreadsheet

The simple spread between the stock market’s average return and your mortgage rate tells you which option is likely to be mathematically more lucrative. But this choice isn’t just about math, it’s also about psychology.

For instance, if you’re just a few years away from retirement, the stability of paying down your mortgage may be more appealing to you than long-term capital appreciation in the stock market. Risk appetite also plays a role, and some investors would simply prefer paying off debt early for the assurance of lower monthly payments.

Meanwhile, if home equity is already a huge chunk of your personal net worth, you may prefer to keep some money in the stock market for diversification. In fact, if you have too much home equity, you could even consider tapping into it with a Home Equity Line of Credit (HELOC). A HELOC is basically a revolving line of credit that leverages the equity in your home as collateral, meaning that you can borrow and repay funds as needed — similar to a credit card.

Finding a flexible HELOC for your needs

If that seems like a smart financial move for you, AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for anything from renovations to debt consolidation. The application is mostly online and available in most states.

It’s also a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan upfront. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

Get some professional help

The decision between a mortgage or stock investment depends on many factors that stretch far beyond a simple spreadsheet. To consider all factors, from tax planning to personal risk tolerance, you might want to consider working with a professional financial advisor.

Working with a financial advisor can help you plan out your financial future and reduce costly oversights. And that’s why there are platforms like WiserAdvisor, which can connect you with vetted professionals who specialize in this kind of planning.

How it works:

1. Share your goals: You provide a few details about your savings, retirement timeline and investment portfolio.

2. Get matched for free: WiserAdvisor scours its network to match you with up to three vetted, reputable advisors who fit your specific needs.

3. Consult for free: You can set up a no-obligation consultation with your matches to see who is the best fit for your long-term goals.

Note: WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

Bottom line

Based on pure math and data, investing in the stock market should deliver a better return than paying off a mortgage early. However, your personal situation also plays a big role in finding the right answer for you.

If you’re young and you’ve got a relatively cheap mortgage and an appetite for some risk, the stock market may be a better option. Meanwhile, if you’re retired (or near retirement), have too much debt or simply prefer peace of mind, consider paying off your mortgage a little early.

You May Also Like

• 10 minutes could get you up to $2M in life insurance coverage with no medical exams. Check your rate and secure instant coverage from your couch with Ethos

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how

• Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself

• Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

Business Insider (1), (2); Associated Press (3); Chase (4); Federal Reserve Economic Data (5)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.