Generally, it is more advantageous financially to invest the money rather than pay off the mortgage if you can attain a higher rate of return on the money than the mortgage interest rate. For example, if you can invest the money and obtain an 8% pre-tax rate of return and you only have to pay a 5% interest rate on the mortgage then you are making 3% on the money pre-tax. However, in order to obtain 8% you will have to invest in securities that have price volatility so you are not guaranteed an 8% return annually.
If you would worry about having a mortgage or about your investments and/or job security, then you would probably be better off not having a mortgage or having a small one.
Financial Advisor
EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice