It seems like a simple question for many people and their answer is that it depends on whether you can invest and earn more than the interest you pay on the mortgage. It is true. However, there are more factors to consider on top of or even before comparing the interest rate and the expected rate of return from other investments.
It was sad to learn that thousands of people lost their home because of hurricane Harvey and Irma. As a financial planner, I am more worried about that some victims are not able to recover from the loss financially because they don’t have homeowners insurance. Even for those victims who have homeowners insurance, they would be surprised and unhappy about the actual amount they can receive from the insurance company due to lack of understanding of their own policies. They could not make any change now but will learn from the claim process. For people who own a house and have not used your homeowners insurance before, I highly recommend you to read through your own policy and make sure you understand exactly what it covers and how much it covers. I will talk about a couple of common misunderstandings of the homeowners policy in this post. Hope it helps.
