Would it be better to invest or pay down mortgage?

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You could also consider becoming a private lender to real estate investors. With the banks tightening up on the loans right now, you could easily get short term returns (1-5yr) of 11-15% or more . Look into it on some of the REI forums link. Of course don't do this on a whim, research it and then decide if it fits your plan. Alot of people don't even realize that this avenue of investing exists.

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First, this avenue of investment is VERY complex and fraught with tons of legal barriers just to get started. Not to mention that exercising liens on properties is a significant amount of work and expense. Although, admittedly, the hard money lenders I know make 20%+ on invested capital.

Second, you could get started doing hard money lending with $150k, but you'd have to do only one deal at a time and focus on the lowest end properties. Thats neither here nor there, but something to consider.

Third, most hard money lenders that I know have enough general RE expertise to know if they're making a good deal or not. If you're not sure, you're taking on a lot of risk.

FYI