Mortgage Blog

I had a case today, when my borrower planned to do a refinance, and we found that her credit score is a little bit low. So I suggested her to pay down some of the credit card balance so that she could have better score, and hence we can get her with better interest rates. But her response was that "she wants to save those money to invest in stocks".

To pay down the mortgage loan, or refinance to a lower rate is the safest way to save money. For the stocks, you do not know whether you can make money or lose money. But for paying down the mortgage, or even credits cards, you will accumulate the wealth. Just in another way.

Besides, paying down the credit card can save some money on the interest payment as well. And It is not wise to invest in the stock market with the money from credit card. If you listen to Susan Orman, she would suggest to payoff the credit cards debts first.