Ask Terry Questions Mortgage vs CD

Mortgage vs CD

By Terry Savage on March 01, 2024 | Financial Planning / Retirement


I have a mortgage with 4.125% interest rate until 2027. There is 72,000 left on the note. I have been paying and extra $500 on it monthly and I am noticing the interest decreasing but on $2-3 dollars a month.

Does it make more sense to keep paying more on this loan to pay it off sooner, or would it be wiser to open a CD or T Bill every other month with the extra $1000?

Thank you for your input and thoughts.

Terry Says

That’s a close call. It really depends on your age and stage in life, and other personal financial details like savings in a retirement account. Without that info, it’s hard to make a decision, just based on rate differentials.

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