Pay down principal or invest?

[Peter Morgan]

Hello,

I have about 100k cash sitting in my checking account and I am at the verge of a refinance.Paying down 25k in principal will help me cash flow about $100 each month.Would it make sense for me to invest else where for better returns or paydown at least 25k principal.Appreciate your inputs.

Thanks

[Carmen Dettloff]

Hi Peter! It would take 250 months (~20 years) to get your 25k back. Alternately that is a 4.8% annual return on your money. Plus you don't have another property that is appreciating. I am sure you could find something with a better return on your investment. 

Good luck, 
Carmen Dettloff