5 Reasons why you should pay your Home mortgage off!
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- Опубліковано 8 лют 2025
- Should you pay off your home mortgage? Here is my opinion.
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A paid for house changes your entire life for the better.
Has to be your home right? Not a house. In the US we get 30 year fix mortgages, nowhere else...Thing is, as inflation rises so does your equity in the property, and at the same time it the inflation eats away at your mortgage and destroys your debt, as these are fixed payments for 30 years. The rents you receive from this property also increase from inflation and is tax free....a situation like that, paying off the mortgage would be detrimental...
We owe 25,000 left on our house! It will be paid for in 2 and half years!
I can't wait!🏠💯
I promise you. You're gonna love it.
@@gphilipc2031 You can do it faster ! :D
Good job!
Haha me too and I have a 2024 GMC TERRAIN ALL PAID OFF WITH 2,040 miles on it . Feels good !!
When I was 17 years old, my parents and brother and I were living in a 2800 square foot house in a very nice neighborhood in Houston. My Dad sold Real Estate. This was in 1981 and the Real estate market crashed. We packed up some, sold what we could and spent the next few years bouncing around crammed into 2 bedroom apartments while my we struggled to pay the rent and other bills. In 1984 my Dad had a great year and bought a house for cash. In 1990 the Real estate market crashed again. This time, he got a job selling roofs after the hail storms and nothing else changed. He still came home every night to that paid off house. I was 21 years old at that time and had just graduated college. This was the most important financial lesson I ever had. I am now 61 years old and I have not had a mortgage payment in over 25 years. The peace of mind this gives me is priceless.
Beautiful story of wisdom and resilience.🤓👍💯🎯
I absolutely feel your comment/blessing!!!!!!!! Good for you!!!!!!!!!! 😇
Absolutely pay it off asap. It saves you tens of thousands in interest, free up money to invest and if you lose your job or can’t work the bank can’t take it for missing payments.
It does NOT free up money in case you lose your job. The money you pay on your mortgage is money you cannot invest. The odds are that your mortgage interest rate is lower than your potential rate of return. Historically, the market returns over 10%. Mortgages aren’t over that
If you lose your job, you aren’t getting a loan to give you extra cash. Home loans & home equity loans are loans against YOUR INCOME, not your home. If you don’t have income, you aren’t getting a loan. Banks don’t want to sell houses to get their money back, they want you to have a job to pay the money back
@@escapedfromnewyorkThe math is not that simple. You have to consider many factors such as your income, your employment stability, how close you are to retirement, how much money you have for retirement, what the outstanding debt is and other things. You’re also not considering the relief it provides when you know you own it. For me and mine…especially with current mortgage interest rates, the house is a high priority. Also, you are referencing historic returns for the market but that doesn’t account for streaks of years of bad returns. If I’m close to retirement and have good retirement savings, the mortgage is a drag on my freedom and ability to retire sooner. I’m paying it off under almost every scenario.
@@escapedfromnewyorksounds kind of not down to earth, most people should not be investing, the majority of the population should play it safe and own the home
@@escapedfromnewyorkI disagree. I paid off a 30 yr mortgage in a bit over 4 years. The amount of interest I saved allowed me to invest in another property… rinse and repeat. Unless you have a super low interest rate - it’s not worth extending out the loan. On top of that - I have property that is making me money with larger profits by the property being paid off.
@@AntonioGarcia-zg7nz AMEN!!!!!!!!!! I'm sooooooooooo very very happy to see that there is strong agreement on "paying off the mortgage." Also, I wonder how many folks who could have paid off their homes but allowed themselves to be hoodwinked into keeping a mortgage!!!!!!!!! I'll bet there are many many regrets!!!!!!!!
having a home free and clear is like winning the lottery.
As a self made millionaire with NO DEBT, I couldn’t agree more with everything you said here. Most people who say don’t pay it off are young fools, they haven’t seen a bear market in their entire lives. My 2 homes have been payed off for 10+ yrs. Life is good with NO DEBT.
Would you recommend to pay off home if that means to be 0% in any other investments?
Similar situation (working my way and very close). Holding title on fully paid off property is awesome. For the rental properties that are fully paid off and renting - the amount of capital that accumulates occurs quickly and you can invest that which can propel your net worth.
@@YuYu-we2ys I would still pay off the mortgage!!!!!!!! So much of investing is inflated GREED!!! 😠
Paid off my main house last month and I’m happy, feels good.Thank you for your advice.
Wonderful!
I follow Dave Ramsey. I paid my house off in October, 2024. It was such a relief.
I haven’t had CC debt for a while but nothing beats having the house paid off!
I have followed Dave for years, paid off CC debt, banked the 6months emergency fund, and now the house is paid off. Out of the three nothing is better mentally than paying off the house.
I’m now in the investment stage. 🎉
Nice...Good for You 🙂👍
Couldn’t agree more. My house has been payed off for yrs. I have NO debt. EVERYTHING I own, I own. Not the banks. I use a cc for convenience and pay the balance off monthly, use the points to buy necessities. I sleep really well. People who say don’t pay it off are fools. They haven’t seen bad times come, and when they do, you have peace of mind with a paid off house.
Heck yeah! Pay your house off ASAP! The pressure of not having a mortgage is a relief! No stress ! Stress can destroy your health! When I buy a Truck it's used for work it makes money! A Corvette makes me no money! Wake up America
Thanks. I'm a 100% believer. Bad times and financial difficulty can happen to anyone. Did to me and it's a real pain that can't be forgotten. Paid up home is a blessing.
New Subscriber here!!! THANK YOU so very much for this video!!! There are so many folks who believe it is better to keep a mortgage because -- so I'm told -- it is better to have the write-off on their taxes!!! I'm happy to say that I never fed into that "insanity" because I told them it is better that the bank cannot make you homeless if you lose your job and/or other income!!! I'm proud to say that I proved all of them wrong!!!
You wont end up Homeless in a Paid Off House if your job lays you off !!
Actually, paying off a house in FL is a money saver in that you can self insure your home and not have to pay outrageously high homeowners insurance.
I made a mistake of moving to bigger condo 2020,had my old place paid off,insurance is killing my mortgage payment, going to bite the bullet and pay it off this summer, and drop insurance ,westpalm area. ✌️🏌
I paid off my house and lake property 10 years ago. Best thing I ever did. 4 heart attacks and 2 strokes later I am unable to work. Plus I only paid 87500 for the house and it values at 200000 now. Not to shabby. I have 25000 into the lake property and its worth 150000 now.
Great video! Thank you! I’m a little over a year from paying my house off very excited! The position of fu is what I’m striving to be at and can’t wait. Great advice, need more videos like this
your right, I will never use my home for a loan or money. We are working towards the backside of our mortgage and the light is on and I can see the end of the tunnel nearing.
No house or car payment or credit card debt means peace
Same here. Feels Great!!!
Sound advice, its been working for me.
Best advice to pay off your mortgage as soon as you can. It's old school logic that currently some "so called experts" keep trying to refute. But it's just common sense. That mortgage payment can now go to savings, investments, college funds, and scores of other areas rather than making a bank richer.
Right!😊
Meanwhile no one seems to care how much they are paying in income taxes. There can be a lot of taxes saved by carrying debt and funding retirement accounts, and the accounts have annual limits. You can't end up with $5k/mo in free cash flow and then choose to divert it to retirement accounts. In fact you'll have nowhere to put it without it being taxed into the dirt beforehand. Instead you spread the funding of these accounts across many years for full tax advantage. Since 401k participation in this country is super low, I expect tons and tons of "debt free winners" have actually been hemorrhaging income taxes the entire time and don't even know it. I save about $35k a year in taxes by carrying debt instead of paying it off.
Paying off loan is guaranteed return, stocks or investments are not guaranteed return.
We’re in CA. Can’t afford to pay it off early. It’s more than tough to just pay the mortgage. 😢 At least the interest rate is sub 3%. 🤷🏻
Idk.rite or wrong but just the felling alone of knowing it payed off is priceless.
I paid off my house 10 years ago. 2k mortgage that I now dump that 2k into investments. Liberating
Down to 30k morgage this year, paid of in 2 more years.. (after many years). woke up to the logic about having a paid off house a year ago ... less debt = always better..🏠
Nobody will ever own anything. Stop paying your property taxes and find out
BRILLIANT POST!! 📫 👏 💯🎯🤓👍
I learned how to build my own home for this very reason. I am currently building my second new home with cash. When we are done, we will have 400,000 in equity. I can use that equity to build another home on my other lot to sell to the public. We live off one income and use the other income to invest.
Thank you so much you made it so simple and clear I’ll be paying my house off this year!!!!and going to the beach!!!
Your thoughts are correct regarding having your primary residence paid in full. First is you will always have a place to live and nobody can raise your rent or interest rates. Regarding insurance, if you live in a gated community like I do they still require some type of insurance. I have 3 payments left on my home and will determine shortly exactly what they will require. Having your home paid free and clear with no other bills other than phone and electric is a wonderful thing. If sure takes a lot of stress out of life. I retired after 45 years and don't plan on ever going back to any type of work, but then I started investing and planning for retirement many years ago. My motto has always been, live within your means and not your dreams !
Man I'm loving these videos, you're getting me motivated 👍😃
Paying off your house is like having gorilla money. What is gorilla money? Where does a gorilla sit? Anywhere he damn pleases.......lol
Pay it off I retired at age 52 no debt at all cash for cars. I’m 70
AMEN!!! I resonate with your comment!!!!!!!!!! 😇
Paid off my 30yr mortgage in nine years over 16 years ago and only debt I ever had.
Also paid cash for my beach home after housing crash in 2008.
The same people that said it was stupid and dumb talking about "good debt" are still in the matrix with debt and working.
I'm retired,debt free,and FIRE at 49 in 2020 currently spending the winter in Bali.
I just started investing/saving early at 15 and all of it has been working for me ever since.
Thanks for the info and explaining how important peace of mind is!
Actually, paying off a house in FL is a money saver in that you can self insure your home and not have to pay outrageously high homeowners insurance.
Edit: You covered this in the video.
Absolutely! Where I live is most important! Can loose everything else.
Couldn't agree more than to payoff and limit your income to debt ratio . It's the start to real financial freedom !
Coming from someone with many homes , vehicles , toys
Etc.... Enjoyed your program
I owe 245,000 on a mix if single and multi family homes (19 doors) and i absolutely cannot wait till my stuff is paid for ..i have right at 5 years left. Ive thought about oulling equity out of one house and just paying everything off and dropping the insurance on the houses that are paid for but i just hate the thought of starting the interest wheel back over so ill wait it out.
I have a small house paid off in Dayton Ohio. Best feeling ever. I''ve had jobs come to an end and I've had to sale my previous home in order to downsize. Buying a smaller home cash has changed my view of life, it has giving me a different type of peace and less panic with the family when emergencies come up.
Yes, investing all your money is great until the market crashes and you lose that high paying job and you lose that house. If you pay off your house it takes a lot of stress off knowing you can take any job to survive.
I get the logic of people saying you could get more money by investing... But wouldnt i make so much more money if i pay off my house and then use those funds to invest freely?
I like to play things extremely safe when it comes to life. Id rather be comfortable and happy than rich.
No. there are several ways that works and several ways it doesn't. To cut it short: paying off the house and then using the extra money to invest means you are paying income tax the entire time. Carrying a mortgage and dumping extra money into a 401k wins every single time because of income taxes. Now if you can fully fund a 401k as a regular working joe, and still have money leftover, then yes pay off the house. however statistics show that most people never come close to filling their 401k. So these people are spending a lifetime being gouged by teh tax man and still call it a win.
I have always bought homes within my means. I only bought ones that needed renovations and could be paid off in 5 years or less after my first mortgage. I get the minimum of what I need. A house isn't for "flexing." Disposible income for investing, traveling, and FU money is a flex.
PAY IT OFF! And fast! I own mine free and clear now and it is an amazing feeling. In 08 we almost lost everything including our business and home. After that we decided to get out of debt asap in case something like that ever happened again. Now I’m working on getting the patent to my land so I don’t have to worry about Real Estate taxes. Get free of banks!
The problem with mortgage is the interest is front loaded. So just comparing interest rates between an investment and the loan is not an accurate calculation. I liked your point too regarding taxes cutting into your rate of return for an investment.
For the life of me, I cannot understand the logic of NOT paying off your mortgage asap. It’s a debt like all other debts. In general, your house is bought by the bank or mortgage company who felt you’re capable of making payments to them. If you buy a house for say, $400,000, you’ll be set BACK that amount, give or take. If your mortgage payments are $2000, only a few hundred is going toward the actual loan. The rest goes to escrow, insurance, PMI (if you put down less than 20%), taxes, and depending on where you live, HOA. You’d be paying that for 30 years. Paying extra toward the principal only will get it paid down a lot sooner. Then you’ll only pay taxes and insurance and HOA (again depending on where you live). Investing your money is never a sure thing. Paying off your mortgage and living without the stress of losing your house is.
Best thing I ever did bought my house in foreclosure back in 2010 paid off my 30 year mortgage 20 years early back in 2020 still have the yearly property taxes and insurance premiums
Very good video!!! Very educational.
Paid off my house last year and it was the best thing that me and my wife felt.
Agree.... Peace of mind is key.
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
I expect home prices to decline in the future, but for now, I advise diversifying investments beyond real estate. With high mortgage rates, signs of a recession, and stricter lending policies, shifting capital into financial markets or assets like gold offers a more secure strategy. The housing market may require a 40-50% correction before reaching stability. In times of economic uncertainty, seeking guidance from an experienced financial professional is crucial.
This sounds great! Do you have any professionals or advisors you could recommend? I could really use some guidance on proper portfolio allocation.
Jennafer Beaver Turner is the licensed advisor I use.
Just research the name. You'd find necessary details to work with to set up an appointment
I truly appreciate the suggestion-it was exactly what I needed! I looked her up on Google and checked out her website, and her investment background is impressive. I’ve reached out via email and am looking forward to her response.
Bought a house in the '60s at 6% interest and by the seventies the note was like a utility payment because of inflation. The only value in paying off your note would be if there was no inflation. If you bought your house with 20% down you will be able to sell it even at a loss if things go south because of inflation. There is a value in having security but that should be in your ability to earn. Everyone has a perspective, thanks for sharing yours and allowing me to share mine.
Agree and Look at an amortization schedule we are paying WAY more than 3% for the first 20 years of a 30 year loan.
Go Cav!! Retired Army here also receiving VA.
Solid video Jack! Very informative and useful information.
Makes total sense! You speak the truth!
Our house is paid off and our full coverage ins for the year is $1200. That’s not bad.
Yaks got some wisdom going on! He’s not just a pretty face! I feel ya. Merica!!
Agree 💯 with you! The home we live in is fully paid for. We owe $26,000 on one of our rentals, of which we could pay off if we wanted. About 60% of the cash flow goes toward additional principal payments, and 40% is set aside for repairs or unexpected expenses. The A/C compressor went out and cost $3,250 to replace, but with that money set aside, we didn't have to sweat it. The other rental is fully paid for from part of the sale of our principal residence of 32 years. We currently live on a 5-acre mobile home that we fully paid for from our 401-k. I don't say this to brag since our net worth is around $700,000. In today's dollars, it's nothing to write home about. Our goal is to be debt free, stress free, and have peace of mind that we are not going to loose the roof over our heads due to debt. This doesn't come overnight, but with some discipline and a little bit of sacrifice, there is some light at the of the tunnel. The tax advantages you get from owning your first rental can propel you there much quicker, but that is the subject of a different topic.
I also listened to Dave and I gained. Have less than 100k to pay off my house. Just recently, Mortgage company did not like my home insurance, due to a low rating… so they made me switch insurance companies, now I have to pay MORE insurance. House payment went up. Missed me off! I’m putting every penny earned to pay it off asap!
Fellow Real Estate professional here and... AMEN Brother! Your primary family house is your HOME not an asset to be used as collateral... It is the ONLY thing you need to protect (other than your family obviously) with all your being. Sold one of our investment property (10 year flip and hold) and paid off our primary home with much of the profit. Security is worth the world. If things go to crap, you are not homeless.
Good advice sir.
Thanks for watching
👍 It would have been great to have heard this 50 years ago! 😊
Thank you 🙏 so much for this information 😊
Such great advice!
The position of FU feels great. I just got there on a small scale. Now I find myself focusing on finding opportunity.
Thank you Sir for the insight, I'm tiared of the old lie !!! Pay it off quicker than later.😅
Logical. Thanks for sharing.
I had a paid off mortgage before the housing crash. Credit froze. I was able to buy my primary home for 43% of its original value in 2007. It was so cheap, i bought a mini farm in 2008.
2.7% fixed
solid fact. Own your house asap, then invest more - solid principle to achieve financial freedom
great video
Very good advice couldn’t agree with you any more👀💯🙏
I agree. Thank you.
Paid off several years ago. Totally worth it. Great piece of mind and I own it! I borrowed 100000 euros. Over 15 years repayment Id repay 120000 euros, over 25 years around 140000. With early payment I repaid around 104000 by keeping interest super low.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 54 and my husband 57 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
Finding financial advisors like Lisa Grace Myer who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website… thank you for sharing.
My son and daughter are in their 30s, single, and own homes that are at least half paid for. They have been making extra hefty principal payments before they get married. This is smart because if they end up getting divorced, if the property that is in their name and paid off is not common property and cannot be split in a divorce.
In 2005 till 2007 my first house was my 🏧 I got out just in time within 7 weeks. Needless to say I bought the next house at the bottom and haven't borrowed one dime since
Very insightful. After listening to your arguement, I tend to agree with you.
Don’t listen to these people bs not paying off your house. Majority of them work for the real estate. Paying have so much benefit to the owner. It’s common sense.
Inflation is going up, rates don’t reflect real debt, these will come home to roost. And many other economic issues in play. My father always told me “don’t spend money that isn’t yours!”. House is payed off, low overhead, and hold extremely low debt. The return is piece of mind.
You can look back if you brought the house several years ago and want to see which would have been better based on the past
In Alabama your house is not protected from medical bills. I wish it did.
Nothing like having your house paid off especially if you lived through the GFC
I agree 100% to pay off the mortgage.. easy for us who bought cheap. I bought my home for 84K back in 2012 plus roommates. It's almost paid off now. Today average home is 400K, that is not easy to pay off.
I remember my parents when they bought their house they paíd it off in like 3 year. And later in life were a lot better off then than my uncles and ants specially in their later years the diference it bécame really noticeable.
And they told us that the first priority should be not to rent and to owe anybody.
I have never been sorry paying off my 30 year 3.5% mortgage in only 7 years in 2020.
Miss a tax payment, you won’t have your house regardless. The government will take it or just auction it off to someone for the tax fees. You never get out from under the bank.
I didn't pay my homeowners policy . The premium was double what it was a few years ago. The deductible amt was crazy for huricane. I had very little damage from the last huricane and I'm getting close to 5% interest on the $ i could have wasted paying for insurance.
You are very helpful God bless you.
Love your videos
He’s right, first of all don’t listen to everybody here. Their experiences their information is based upon their own situation or others that you know a little about. If you can live in a house with no payments that gives you a lot of freedom. And the biggest freedom is psychological..
I regret paying off my home said NOONE. We bought in April 2021 @ 2.875% , first payment was due in June 2021, We've overpaid the principal every single month AND add another $10 more per month every Social Security COLA. Knocked years off the life of the loan already. NOTHING gives you more peace of mind than having a paid for home AND we also have the double homestead exemption, once we claimed it our property taxes almost halved and once we turn 65 in 5 years property tax HALTS. I'm not going anywhere.
I WIILL ever be paid as long as the property taxes keeps going up and up to the point it becomes like a mortgage payment and stage will take you house !! Abolish property taxes
I paid off our home in 13 years and the freedom feels good and I wanted a safe space.
We have a long long way to go but this is our goal
I just bought at 6.6% I AM ABSOLUTELY paying it off as fast as possible. I don’t want anyone to come tell me that I owe them
3 minutes in and this video already makes more sense than all of the financial pundits who ignore the psychological benefits of being debt free.
I wish I could pay my mortgage, specifically after learning the amount if interests I will pay, is another house
You still come ahead if you pay off the mortgage. Instead of the 2% delta( 5^% bank account - 3 % mortgage rate example) you would get 3.15% (3% freed up cash flow x 1,05). Just doing simple math- no compounding,. 3.15% > 2%. - pay off house.
The amount of money you can save by not paying a mortgage every month is insane. I paid cash for my house during the last housing crisis. House’s were dirty cheap at the time, so I capitalized on that. Best decision I ever made!!! Now 13 years later, due to health issues. I’m no longer able to work. If I still had a mortgage ever to worry about every month. I’d be in big trouble right now. So, I thank the Heavenly Father I have a mortgage at this time. Being in debt is never good for you. It’s only good for the people you owe money to.
These are all valid arguments, but there is no way that every situation calls for the exact same answer. Educate yourself, figure out your priorities and goals, and act accordingly.
Also, regarding the "you can always get a home equity loan" no you can't. If you don't have income, you rarely get that loan.