Would it be better to invest or pay down mortgage?

[scotchnrocks]

[ QUOTE ]
I don't mean to hijack the thread, but can we look at a hypothetical situation where investor has lots of cash (let's say 5 million) and wants to buy a $500,000 house. Money is not a concern for the investor. Assuming a 6% fixed rate on the mortgage and 9% annual returns in the market. Wouldn't they always be better off making as small a down payment as possible and putting the rest in the market? I've heard arguments that you should try to pay off your mortgage as soon as possible, but I don't really understand that idea. As long as your mortgage interest rate is lower than the return you expect to make in the market long term, it seems it would be wise to put it in the market, regardless of one's financial situation.

[/ QUOTE ]

Don't forget the immediate savings in some of the closing costs from paying all cash.