Pay off Mortgage or Invest?

My grandmother died, and we just received about $20,000. Should we use the money to pay down our mortgage, or should we invest it?

My grandmother died, and we just received about $20,000. We're wondering whether we should use the money to pay down our mortgage, or whether we should invest it.

These days, there's rarely any reason to rush to pay off the mortgage. If you locked in low rates over the past few years, then you generally can do better by investing the money.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.