I agree with Steve that unless you know what you're doing, the stock market is a wild jungle. Mutual funds rated as low-risk are about as far as I want to go.

Your dilemma seems to be a trade-off between dollars and feelings.

Paying down the mortgage might make you feel "secure," but:
(1) you lose a tax deduction on the interest you pay on the mortgage,
(2) you put the money where you can't get at it again without selling the house, whereas with other investments you can get the money again if there's a disaster,
(3) if real estate values crash in your area, you own a building worth far less than you paid for it,
(4) if real estate values do not crash in your area, the payment will soon seem like a small one (like the payment for your old house seems now), and the value of the building will depend on more than your efforts--you're risking that no neighbor starts working on motorcycles or shooting at tin cans in the front yard,
(5) you still benefit if the value of the house increases, whether you own 20% or 100%.

I got these ideas from the following links, but I was skimming, so check them out for yourself.

Kiplinger investment advice: Pay off the mortgage or invest?
http://www.kiplinger.com/columns/ask...2006/q0706.htm

Beginner's Investing: Pay Off Your Debt or Invest?
http://beginnersinvest.about.com/cs/.../a/031901a.htm

USATODAY.com - Should you pay off your mortgage? Maybe not
http://www.usatoday.com/money/perfi/...mortgage_x.htm

Kassie, this is something many, many of us have to consider. You certainly got me thinking. Thanks.

Jaye