Regular Contributor
Posts: 173
Registered: ‎10-11-2007
If I have the money to pay off my mortgage, should I pay 100% or 95%?

If I only pay 95% I will still have an active mortgage.  Does having an active mortgage help your score?


I'm 6 or 7 years into a 30 year mortgage, with scores in the 700's, and trying to decide how to invest my money.  It seems unlikely I could find a better interest rate than not paying interest on my mortgage.  But if I pay it down 95%, it will have about the same effect, but might make a big difference to my scores vs paying 100%.


The money is from selling stocks.  I sold them because I was concerned that the "sequester" might cause the market to start going down.  I was probably wrong about that, but even so, I think I might get better long term results by saving money on interest than by hoping for gains on stocks.  I did get lucky by holding a large amount of facebook stock from the low 20's till the low 30's, and then selling just when it reached its peak and started going back down.  But what are the odds I would get lucky again?  If I buy it back on the way down, it might keep going down.