Do I Regret Paying off My Mortgage Early?
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- Опубліковано 27 чер 2024
- Exactly 2 years ago (March 2022) I paid off my mortgage. Now, after being mortgage free for 2 years, do I regret paying off my mortgage? In this video I'll share the 3 things I learned after being mortgage free as well as 3 common misconceptions about mortgage payoff.
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This comprehensive video delves into the transformative journey of paying off a mortgage early, addressing common criticisms and showcasing the undeniable benefits of mortgage freedom. The speaker shares three pivotal lessons learned and unveils unexpected advantages, such as financial bliss and the liberation from the biggest financial burden most people face: their mortgage. By dissecting misconceptions about mortgage interest as a tax write-off and the notion that only the wealthy can achieve early mortgage payoff, the video illuminates the path to true financial independence. It champions a balanced approach to investing and mortgage repayment, encouraging viewers to consider the peace of mind and financial flexibility that comes with owning your home outright. Join us as we navigate the myths and realities of mortgage management, providing actionable insights for anyone aspiring to financial freedom and a debt-free lifestyle.
#financialeducation #financialindependence #debtfree
Do I regret paying off my mortgage early? Find out in this video why the answer is a resounding no! Discover the three reasons why I'm still thrilled with my decision two years later. Subscribe for more insightful financial content!
Curious about the advantages of paying off your mortgage early? In this video, I share my personal experience and why I stand by my decision. Tune in to learn why I have no regrets about becoming mortgage-free. Hit subscribe for more financial wisdom and inspiration!
*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
My three favorite channels: Bob Sharpe, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
Thank you!!!
I just recently paid off my mortgage in January and my car this month. As of April 1st I will only have property tax, insurance and regular utilities to pay. With all my money freed up,I will have about 60k a year extra to invest or do whatever i want. Paying off my house early was the best decision I ever made.
You should look at being self insured, it can be risky at first but ultimately will save tons of money. Keep it in some type of investment account and if you need to "make a claim" just pull the cash and take care of it.
I paid my mortgage off two years ago as well. It provided me the means to walk away from a very stressful upper management position and work for myself building privacy fences, mowing lawns, and providing handyman services. I never would have done that with a mortgage hanging over my head. I am also able to invest $150 every single market day, which is $36,000 per year. Next stop: Net worth millionaire 💰
Hell yeah thats awesome man!!
Hey, that's a clever way to stash away 36k!😮 Interesting
That’s just so cool !!
Paid off my mortgage at 46 , four years ago . Family and friends said I too , should have invested it . Two years later , I was dxed with MS . I couldn’t keep my job or do many things I used to be able to . Had I not paid off the mortgage, I would have eventually been forced to sell and rent an apartment. Being mortgage / debt free gives you so much freedom , and you know never know when life is gonna try to kick you down
Ahh yes, the money you rather would’ve invested would’ve not existed to pay off the mortgage 2 years later if needed.
I paid off my house in December of 2021 after 14 1/2 years. I was borderline obsessed with paying it off from day one. I did sacrifice a lot to get it paid. I have no regrets. Would I have done it slightly differently if I had the chance? Perhaps, but I still have no regrets in paying it off early. It is psychologically empowering to be debt free. I’m crushing it on investing now. Putting at least $35k/yr in my investments. Life is better without a mortgage.
If I wake up and if I have no work, I enjoy the day. If I have work, I consider that bonus money.
You're winning everyday.
On November 30, 2023, I sent the mortgage company a lump sum payoff check 8 years early. I'm an avid stock options trader and dividend investor so I understand the market. I can't tell you the amount of heat I took from the naysayers running market rate of return vs mortgage rate calculations in order to dissuade me. Most talking about market returns and imaginary tax write-offs. The peace of mind living debt free at 44 is incredible. It has changed my life and created opportunities for investments and financial opportunities otherwise unachievable. My wife and I started 2024 with a clean balance sheet and our net worth compounds each month. Bob, I've been a quiet viewer for some time now on your channel and appreciate your candid thoughts and opinions.
what was the lump you paid off? You're likely in a class of folks that most of the commenters here aren't in. You paid off the mortgage early and invested lot. Whatever the lump sum payment was wasn't going to be 100% in the market anyway. You either had cash saved or sold stocks to pay off the house, then you invested even more to make up for the sold sum and the lost opportunity costs. Doing it that way isn't what most people can do, as they aren't capable. Many folks pay off the house and don't invest, they just like no mortgage payment. As an avid stock options trader and dividend investor, you're in the minority of Americans and you're probably financially literate, know how to save, pay credit credit cards on time in full, and know how to budget. That's maybe 5% of Americans :)
The market rate of return vs mortgage rate calculations assume you always get a return on your investments which isn’t always the case. They also don’t factor in things like a job loss.
Just paid off mortgage Dec. /23 Best feeling in the world!!
That's awesome!! Congratulations!!!
Almost there, 12 months away.
I did it and it is a really good thing when all the craziness is happening in the economy.
This dude is so real. Honestly appreciate the transparency he gives.
I borrowed 400k in 2009 & Just paid it off …. Home is now worth about 750k….. My motivation was 3things. 1, I could just not live with still having a mortgage going into my mid 50s/60s. 2, I will save 190k in income I will invest rather than handing it over to BoA. 3, If I die my kids have no worries, & I can now approach my corp job like it’s just for fun….. Love your channel.
I sold my commercially zoned home 7 months ago and was able to cash out a home in a cheaper part of my state. It has been total bliss not having to worry about paying the mortgage. I am completely debt free and loving it. 👍🏽👍🏽👍🏽
I paid off my mortgage a little more than a little more than week ago. Paid it off in 6 1/2 years! I worked a LOT of OT!
Great job. Now enjoy your freedom and less dependency on your employer.
Congratulations!
How did you do that? Advice me please!
@@jackbelkada3864
A lot of overtime
Paid off my mortgage 2 years ago and, like you, have zero regrets. It took 11 years to do and best decision ever. No debt at all so all my income is mine. Currently investing 25% in retirement and still have boatload of income left over.
Your story is so close to mine. 2007 was a bad time for a 25 year old buying a house. Completely changed my mindset. Paid off my next house in 2020. Never was going to be put in that situation again.
I agree 110%. Just paid off our home early this past December. Busted my butt by picking up extra shifts and overtime and dumped it all into the mortage. The peace of mind is priceless
We lived poor and in addition to paying extra on our mortgage every month, we max'd out our 401k contributions. We worked like dogs, but I never ever wanted to live in an apartment again. I love owning a paid off house in retirement.
The #1 unexpected benefit is it cant be foreclosed on
Great point!
As long as you don't default on your property taxes
@@nimblefred2932 and hoa if you have one.
Unless you live in an HOA and don’t pay your dues
Stop paying your property taxes and we will see who the real owners are.
4 years ago this week we paid it off. The change in cash flow was noticeable. We are plowing every bit of the mortgage back into investments and we are very close to financially free. Knowing then what I know now, perhaps I would have moved slower to pay off a 2.75 mortgage, but I’m glad I don’t have to make that decision and I sleep very comfortably at night in my paid off home.
The short clip you made is spot on. I always call it: "bleeding when the curtains are closed".
FU is the best from this video. Man, thanks for this video. We are still attending to Dave Ramsey baby steps course and for sure we want to get rid of our mortgage. Right now we are working hard to pay our two auto loans.
Just paid of our mortgage this Monday, I did cash out my 401k & Savings to do it, and NO HOA to worry about. But as I earn a good income in my industry, I figure I can save $70K a year to build up saving before I retire. At worst I can work at Walmart and cover all our bills, but yes, having no worries any more on the mortgage is a great relief!
Why would you cash out your 401k?! I’m all for paying off your home early, I’m currently trying to do so. But pulling your 401k out is a bad bad move.. sorry
Well my friend, this is the best video that has touched me in a long long while. I had this 'moment' 7 years ago. I have been mortgage free now since my fortieth birthday. So i am 7 years ahead of your video. Trust me, 7 years ahead I can say hand on heart you have done the right thing. I cant say with words (its hard) but the idea of paying your mortgage is the best thing i ever did. Guys listen to this video, i think it could be one of the best thing you could do. liked, subscribed AND passed on to my family. Thank you man.
I work contract to contract so paying off my property is just a huge weight off my shoulders. I sleep much better not having to worry about my next contract or company re-org. Also, with everything cost so much now, not having a mortgage and car payment help navigate the trouble water a little easier.
We are on a 5 year plan to pay off our mortgage with 2 .5 years to go. Currently paying 2700 per month on principal with a 1433 mortgage payment. That will free up over 3800 a month when the mortgage is paid off (will be just paying property tax and HO insurance). Yes, we are eating a lot of chicken, but the payoff will be nice.
Funny we’re eating chicken.
Bought my house brand new and paid cash. Five years later still glad.
Payments keep you bogged down and dependent. If you have no debt and lose your job or an emergency comes up, it's really not that stressful. No debt = freedom.
Paying off the mortgage early is a goal of ours, so I tend to watch lots of videos about it for continued motivation. I know all the nuts & bolts of "how", but I really appreciated your explanations of WHY! Great video 😊
Every time I see a video of someone paying off their mortgage early, I see many comments about how it’s not a good strategy and that you could make more money by investing. I have yet to see a person say they regret paying it off early. If you pay off the mortgage early you can always get another one.
exactly. #1 is easily simply not having a financial and mental noose around my neck.
Just because people say they don't regret it doesn't mean that it was the better financial decision. People do things they don't regret all the time that don't make sense financially.
Anyone who says you should put it in the stock market instead od pay off the house didn't go through 2008. Your story mirrors mine exactly. My house value dropped 50% and i was stuck for 10 years too. Completely changed my outlook.
2008 was not a normal occurrence and in many places in the country, homes did not fall by as much as the average, or at all. Banks have gotten much more strict with lending practices because of the GFC of 2008 and so another situation happening like that is just... not going to happen. 99/100 times you would be better off with a stack of stocks and a mortgage than no mortgage and no stocks. You can't eat a house.
Thanks for the content Bob. Been working hard to try to pay off our mortgage early for the last 3 years. Going to be in our house for 8 years on a 33 year loan and will have it paid off in the next 6 to 8 years. We do 15% in investing and everything extra going towards kids college fund and the house.
Thank you for sharing, I got my home in 2021 in Wv. Plan to payoff in 8 years so now I have 5 years to reach the goals. I can do it!!!!!
Paid off my mortgage this year, and I don't regret it at all. The freedom and relief of achieving such a long-range goal is profound. Great video!
That's so great!!! Congratulations
Agree 1000%, paying off my mortgage gave me lower daily stress. The sense of security in the face of adversity is as you say FU!!
Hey Bob,
I was the one who told you to do it and you would never regret that decision. Mine will be paid off for 7 years in October. It's about making a decision and finishing it until done. Way to go Bob!! You're awesome 👍🏾✌🏾🙏🏾💜💰
Thank you!!!
Paid my mortgage off December last year. Using $5k/mo mortgage payment to buy ETF’s monthly.
I also saw videos to invest the money. Owning my home early was more important as I have four investment accounts that are aggressive and doing well. I paid my 30 year mortgage off in fifteen years and just one month after I got laid off from a job that I was employed 17 years. Had I not paid off my mortgage I would have had 15 years of payments ahead of me.
This move allowed me to make the decision three years later that I wanted to retire early. Not having large expenses like a mortgage and car loan (which I paid early as well). Because during those 17 years of employment along with paying my mortgage down, I was able to build a large nest egg. I have been living off my nest egg for the last four years and do not have to touch my investment accounts.
If I had a mortgage I would not have retired early. Paying my mortgage early gave me the option to retire early.
Great video, thanks
I'm on the journey! Started making extra payments late last year and will continue to do so wherever I can!
I can’t wait to be in your shoes. I should be done by may next year. I work 6 12 hr shifts a week. My goal to pay house off before I’m 40. Can’t want to start investing my mortgage payment and let that money grow
Thanks for your content.
Thanks for the content!
You’re welcome, thanks for commenting!
I’m still in my journey of paying my Mortgage off. Bought in CA in 2010, if everything goes as planned it’ll be paid off no later than Dec 2025. I can’t wait
As a single income earner with a small child...I drop as much as I can into principle payments and waiting for the day when I can say I'm mortgage and debt free! I don't tell all my friends bc I don't want to hear their negativity but I'll be reaping the rewards of my hard work.
That’s awesome! Good for you! We are doing the same thing! Our mortgage will be paid off in December 2026 and we can not wait!!!
You sold me with the F.U reference. 😂
PAID off my mortgage last year!!!
Congratulations 🎉
I pay an additional $1000.00 on the mortgage principal every month and my husband makes fun of me. I forwarded your video to him. It’s unbelievable to me that people are willing to pay all the interest year after year. Makes no sense.
@Gyota... Do u have a sister?
Would you rather pay off lower interest to your mortgage or receive a higher interest rate into your retirement? It’s actually very clear if you look it up and understand the math around it.
Great video thank you
Hey Bob, I'm 55 and a renter. I may never own a house again. Like you, I was a homeowner in 2008. Unlike you, I was also getting divorced. Oh, and my business failed. Flash forward, and I am now a financial professional with FU money. I'll be a millionaire by the time I retire. I might buy a condo or something I don't have to tinker with all the time. Cutting grass, shoveling snow, doing repairs...
There’s so many variables. The two biggest factors are peace of mind of a paid off mortgage or leveraging the largest asset most people will own.
Peace of mind is fabulous!
Absolutely!
Paid ours off in 2015. We didn’t feel any better. Pulled cash out via financing during the Covid crash and stuffed it in the market. Then sold the house in 2023. We could pay cash for the house we bought in Feb. 2024, but we didn’t.
Unexpected negative: we realized how much we were paying to lease “our” paid for house from the state and the federal government.
Working on paying mine off early. Paying extra each month
You have freedom. I was on trajectory to do this. I had 6 years left on my mortgage and then my wife wanted to leave me and start her own life. I was trying to have this freedom before we both retired with our pensions…
Ive been overpaying my mortgage for years, and should be mortgaged free in the next 5years. I got flack from people saying i should invest aswell, especially that im on a 1.59 rate. However the mortgage rates have jumped to 6-7%, so when i remortgage (FYI - im in the UK, so might be different to the US), i will still pay less per month than what i am paying now.
For me, as i have a family and im the sole earner - i had to ensure that my family would be taken care of in the worst case scenario. If i was single, i might have done things differently. But once im mortgage free, i can start putting money into investments that if worst case scenario happened, my family will still have a roof over their heads.
I paid off the mortgage 2 months ago and I've saved $3000 since then. Best feeling ever. I don't have CCs or loans or car loans so I'm sitting pretty right now.
The value of not having a morgage is largely understated. We pay using income that has already been taxed. So eliminating a $2000 is more like getting a $2,666.67 raise, assuming 25% tax bracket.
That’s a great point!! Thanks for commenting!
Paid off 7 months ago. Super happy.
Congrats!! 🎉
Awesome!
I just finished paying off child support, I've been treading water basically living check to check for so long that this feels like a windfall and I have accrued a fair amount debt. Now I can put that money towards debt freedom without any impact on my day to day budget. If I only put that extra money on the house it would be paid off in 6 years, 22 years early. I'm focusing first though on high interest and working my way down, credit card-cars-house. I haven't neglected to save for retirement in the meantime, I'm sitting on a tidy 3/4 million 401k that's averaged 14% annually for the last decade. I can't wait until I'm debt free with that F-U money! I'm in my early 40's with a goal to retire debt free in the next 10 to 15 years.
That’s awesome - onward to the FU Money!!
We paid our house off a couple of months ago… Freedom!!
Amazing! Congratulations
In Australia we have a mortgage product called a “mortgage offset” it works as an account attached to your mortgage, and however much cash you have in that account offsets the interest payable on the loan amount.
For example: 500k loan, 200k in the offset account, you’re now only paying interest on 300k and principle repayments remain the same.
Pretty nifty little product that allows the average homeowner to save money on both ends.
We paid off our house almost two years ago and have not had even one moment of regret 🎉
I'm a year away from being mortgage free after hugely overpaying for seven years. I've given up trying to advise friends to do the same. People seem to not care about their future selves at all.
On this journey….seems long, but I’m definitely staying on it!
Am contemplating paying it off
I got mortgage free back in 2017.I invest 60 percent of my income.
I do agree, I do not have mortgage payment nor rent payment results I can sleep well and now I have enough money to invest in my financial future.
I feel good about, if everything goes according to plan, being debt free by the time I retire.
Most people of my age here in Sweden don’t even think about paying their house of during their lifetime even.
I debated it .. just started heavily investing 💸
There are risks associated with having all your wealth tied up in the equity in your home too. Sometimes that value can change drastically for reasons outside your control.
My wife and I will pay our home this week, we currently own $817, it took us three year to paid it off...
Same place in my life, no debt. From that moment I was better off every year than the one before.
I paid mine off watching Steve Daria vids for inspiration during the pandemic. Went through the pain to get to the financial bliss.
Paying off your mortgage early is a great goal
Paid off my mortgage in October had it for 6 1/2 years. I have no regrets. If I pass my family only has property taxes and bills but no payment which can easily be done with my life insurance or a regular 9-5 job whichever they prefer. It is mentally liberating to know my family has this ability nothing compares.
Im on my journey just purchase the home in November first mortgage payment in January....already 8 mths ahead by paying extra on the principle
Paid off my house in 6 years! Worth it. I remember writing a $100k check to the bank for my last payment. Was amazing. My friend told me instead put that $100k into s&p500 but still have their mortgages 🤷♂️
9 months away from paying off the house; looking forward to it!
I didn't anticipate it. But I have never slept better since paying off our $650,000 home @ 52.
We are cleaning up a little debt then we are going to chunk major money on our mortgage! My goal is 5 years
The argument between what is good and what is better.
My wife and I have dove into your plan in to being not just mortgage free, but debt free. I paid off my car a few months ago (Step 1, COMPLETE). Her car will be paid off in December, if not earlier (1.5 years early). From there, throwing it all at the mortgage until we have 80% LTV on the original value (regardless of the fact that it is already higher now), and then every cent we have goes to the student loan. In 14 years we should be entirely free, and we are NOT talking just a couple hundred thousand. LETS GO!
I'm just under 3 years to paying it off and that will be a big celebration. Just over 10 years instead of 25!!
All of that lost opportunity cost is damaging. If you’re bad with money, yes pay off your mortgage early, if you’re good with money pay the minimum and invest.
Paid off in '21. If the insurance premium gets out of line, will just give them the finger. Huge!
At some point you run out of time. Pay it off early. Invest, stay healthy, stay out of car/credit card debt and live life after that.
Good job listen to the Ramsey show secrets 😉😉👍😄
I agree the weight lifted off your shoulders knowing you have shelter without the risk of losing it due to financial reasons is my favorite part!
Paying your debts and mortgage early and quickly enables wealth building.
Spot on!
My insurance has gone up 85% and my property tax has risen 31% in the last 2 years. My taxes and insurance are now higher than my principal and interest. I’m now paying the government and insurance company to live in my house.
I switched to State Farm January 1st to save almost $1900 a year for the same coverage as I was getting at Farmers. It's like a 300 a month raise.
I recently paid off my house. But there's no "FU" as I am very much aware that if I ever can't pay my property taxes, the government will take my home away.
Best thing to do is pay off your mortgage.. Take whatever homestead exemptions you're entitled and it reduces and even eliminates property taxes. We bought our house in 21, overpay the principal each and every month, reduced the life of the mortgage by over 6 years. Being out of as much debt as possible PRICELESS.
The best decision 👏 I ever made was paying off my mortgage! No regrets! I paid my mortgage in the year 2020, literally right when the pandemic hit.
Looking forward to keeping my payment
If that is what makes you happy :-)
I'm almost there!
I am on target to pay off my mortgage 4 years early on a 25 year term, which is fine. I could have gone hell for leather to try to pay it 10 or even 15 years early but this would have left me unable to buy a car and other stuff I needed. I think paying off a few years early is good, but you shouldn't push too hard because you also need save and invest, as well have some decent holidays and the essentials of everyday life. It's all about balance. My mortgage is only $1k a month so I don't lose sleep about it, but I know many people overexpose themselves and pay crazy money like $3k a month and more - not a great idea.
I paid off my mortgage too.
No car note. Don’t owe anyone anything.
Don’t regret it at all.
The peace is so underrated.
One of the books I read call it F_U money. It’s so true. I can literally say F_U to anyone at work. Don’t care about layoffs. Not a worry in the world. Even negotiated two raises because I wasn’t “forced” to settle.
I see two many people who say “I’ll invest the money and make out on the difference in interest rates”. BUT reality is most people just spend the money on random crap.
And when the economy crashes as you said you lose your job and your investments drop.
The worst thing you can do is to think of should have, could have. Retro-reflections of course is always potentially easier. A few things to add - now in my 50s - I have my sons investing since they were 12, showing them the importance of financial education. Gameplan - whatever nest egg start - they will have over a decade, as compared to their buddies on the Roth journey for instance. Once they graduate from college, come back to the nest - build their initial cash flow foundation by investing 80% of their take home. From there in their mid-20s they venture out, debt free and with a small war chest to tackle this journey of life. These days, young individuals want to pretend they are on their way to financial freedom by living that lifestyle- instead of cash flowing like no tomorrow and then can life a lifetime of abundance.
This advice is why many people never retire or retire late. Time is the largest component to compound interest. Funny how this was missed in this video. Do research people!