<prompt> Human: Given a 1035 house payment, about 713 of which is for the actual mortgage, and using my favorite amortization schedule calculator I am wondering where to put an extra 165 or so per month. Left alone, the house costs about 112K in interest at 4.25 for 30 years, or just over 74K in interest with 165 extra each month. OR, I could put that money into my IRA, which gained 10 from last year. So the answer is that as long as the retirement funds grow faster than the interest on the house, I am coming out ahead, right?  <response>: A mortgage is not a bad debt to have. You have a low interest rate and the interest is deductible assuming you itemize. With that said, you cannot borrow for retirement. Also take into consideration the time value of money. 1 invested today is worth more than 1 invested 5 or 10 years from now. At 10 that money will be worth more to you in retirement than paying down your mortgage. 