Couple Divided Over Paying Off $300,000 Mortgage at 2.75% Versus Investing the Cash

A 57-year-old woman and her 59-year-old husband are at odds over whether to use $300,000 of their savings to pay off their 2.75% mortgage, a debate that hinges on the trade-off between guaranteed savings and potentially higher market returns. The couple earns $300,000 combined annually and holds about $1.9 million in investable assets, including $1.5 million in 401(k)s and IRAs and $400,000 in savings and short-term investments. Their home, bought in 2003 for $410,000, is now worth about $720,000. The husband argues the money can earn more than 2.75% by investing, while the wife wants the security of an unencumbered home in retirement. The dispute is sharpened by his unilateral move of $60,000 from joint savings into a brokerage account without telling her.