How to use this quiz
Answer the 6 questions covering your mortgage rate, other higher-rate debt, emergency fund, prepayment penalty, expected investment return, and how much the mortgage bothers you personally. The core comparison is your mortgage rate versus the return you could earn investing the same money — that spread carries the most weight in the scoring. The peace-of-mind question is real and counted, but it doesn't override the math by itself.
What your result means
"Extra payments could save you thousands" means your mortgage rate is high enough — or expected investment returns low enough — that the guaranteed interest savings likely beat uncertain market returns, especially combined with your preference for being debt-free. "Toss-up" means the rate spread is narrow and a hybrid approach (half to mortgage, half to investments) captures some guaranteed savings and some growth. "Other priorities may matter more" usually signals higher-rate debt that should go first, a thin emergency fund, or a low mortgage rate that makes investing the stronger mathematical play.
When to trust it
The recommendation rests on a rate-versus-return comparison, and both inputs are estimates — investment returns are variable, and your mortgage rate may change if you have an ARM. The guide also can't weigh factors like liquidity (home equity is hard to tap in an emergency), the mortgage interest tax deduction, or upcoming life changes. Before prepaying, confirm there's no prepayment penalty in your contract, verify your emergency fund covers 3-6 months, and run the actual amortization in a mortgage payoff calculator with your real numbers.
Frequently Asked Questions
When does paying off a mortgage early make sense?
Clear cases: your mortgage rate is meaningfully above what you earn after tax on safe investments, you've already maxed tax-advantaged retirement accounts, and killing the payment buys you peace of mind you genuinely value. Weaker case: a 3% mortgage paid off early while the money could earn more elsewhere — that's choosing a guaranteed 3% over a diversified portfolio, which is a lifestyle decision more than a financial one. Both are defensible; be honest about which you're making.
Should I recast or refinance when paying extra?
Different tools: recasting pays a lump sum and re-amortizes the same loan — lower monthly payment, same rate, small fee, no new closing costs. Refinancing replaces the loan — new rate, new term, real closing costs. If you have a lump sum and like your rate, recast. If rates have dropped below yours, refinance (and consider keeping the term short so the payoff math doesn't reset). If you just want to pay extra monthly, neither is needed — extra principal does the job.
Is my mortgage really 'good debt' I should keep forever?
'Good debt' means cheap, not free of tradeoffs. A low-rate mortgage is often the cheapest money you'll ever borrow — but keeping it forever only wins if the difference is actually invested (not spent), your cash flow would survive a job loss WITH the payment, and you're not paying for the psychological comfort of a paid-off house with a materially worse portfolio. The quiz weighs those; the honest answer is that it's a personal allocation call, not a universal rule.