LOL, I'm not actually suggesting people borrow money via bank loans to invest - you are absolutely right, that could be very foolish!

What I am saying, though, is that paying the minimum on your mortgage (what you have to pay each month on a 15 or 30 year loan) and investing any surplus into an index fund will, OVER TIME, give you a better rate of return, since you are only paying 3% interest on the house loan vs. HISTORICALLY making an AVERAGE of 9% in an index fund.

However, like I said to Jane - not everyone wants to deal with the uncertainty. Paying off your mortgage is a sure thing. It's less risky short term. For a lot of people, the security of a paid off house is huge.

Thanks for your comment!