We were able to pay off our mortgage this past august. Life has been changed drastically for us. We no longer worry about money and our focus now is saving. We were able to pay it off in 10 years. The remaining balance was 20k and we payed the lump sum. At age 33 with a household income of 120k. I’m very proud of us.
As soon as you demand charity, it becomes tax. As soon as you share your charity it becomes marketing. So embrace others to it, but don't go after and demand it of them!@@kbanghart
8:16 PREACH DAVE 🙌🏽🙌🏽🙌🏽. Paid off my mortgage on 3/7/24. Thanks for the roadmap Dave! Thank you God for sending Dave! To God be the glory for the things the Spirit of God has done!!!
I paid off my house 3 years ago. I literally can now save $60K per year. It's pretty cool, and I am single with no kids or other debts 😊 🎉 best part is I love working and making a 6-figure income. Next is finding someone to share it with. Starting my 40s with a bang 🎉 😊
Paying off your house means more than just financial peace. The mental peace you get knowing that you can go to bed at night not owing money to anyone is a feeling of tranquility that is hard to describe.
No thank you, especially not for people with sub-3% mortgages. I can arbitrage the rates and buy Treasury bills/bonds or save it in a HYSA and earn more. It's much better for financial peace if you have the money to pay it off, but have it in liquid assets to easily use it when needed.
What was your interest in the mortgage? I also have 180 k mortgage with 6.5 % … the amount of month have to pay in interest is crazy ( fir a 30 year mortgage)
@@andratoma9834 5.4% but I just now remembered that it was a 115k mortgage but I put 60k on the down payment which really helped. And also paid off a 40k work truck during that time
We paid off our mortgage in this November Thanks to Dave’s 7 Baby steps and now we are one of the everyday millionaire because of his teaching! Very grateful that our family future has changed and we are now in Step 7! God Bless Dave and the team and it truly works if you follow his outstanding advice as we have validated it through our own experience to build financial peace and wealth!
As a 26 year old married guy who just bought a home for my wife and kids and owes $340,000, that debt is daunting! I cant wait to get where some of you are.
Paid off my million dollar home 2 weeks ago at age 51. Holy cow I am so happy. No stress. I now have a huge asset to leave to kids. I can now enjoy the rest of my life without a mortgage payment. So many options open up when you don’t have a mortgage payment….
In the early 1990s, when I bought my first home in Miami, first mortgages often came with rates of 8 to 9% and 9% to 10%, which was quite common. It's important to consider that we may never return to 3% rates. If sellers are compelled to sell, home prices may need to decrease, leading to lower valuations. I believe many others share this line of thinking.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Melissa Elise Robinson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I currently owe $85,976 on my mortgage loan and I’m aggressively paying down this mortgage at this time. I can hardly wait to pay this loan off. Then I will be debt free! Yessss!
Having sacrificed and paid off my home years early …. I was able to leave a toxic work environment and maximize the teachings of both Dave and Ken at the same time. Thank you both and ALL the team at RamseySolutions.❤
@@IrisP989 The main thing was never buying anything new. Always shopped thrift for clothing and cut out impulse buys. After taking essentials for my wife and children, all available extra funds went to paying down the mortgage…… Now, being able to make the choice to leave when I chose to was life saving and easy. My life and work has taken a nice turn for the better. I’m with my family more than ever before over the last 7 months . Being around a new and extremely positive work team is amazing. Finding Dave and Ken has helped me and I listen and read daily to continue to build my family’s and my personal happiness and growth. Take care. 😊
@@Maya-rw3fe you make extra payments. Double payment then any unexpected bonuses or tax return put on your mortgage. Google mortgage payoff calculator. I found one that way. The ramsey one didn't have the 30 year mortgage option so don't use that one if you have a 30 year mortgage. It's so fun! Now I'm super motivated to pay my mortgage off early!
Good luck to everyone on their goals this year. I only make 25k and just paid off my 60k mortgage in 17 years. Im still poor, but house payments are the least of my worries
Love this! My husband and I live Canada and paid off our $260K mortgage this past August in just under 5 years! We also cash-flowed 2 vehicles and countless home items (fence, furniture, etc.), and have also paid for daycare and put money away for our childrens’ education funds throughout! We bought the house for $565K, so had saved up a huge lump sum in advance as well. It IS possible! 🎉
Of course it can be done if you are making the money you both are making. $52k a year just on your mortgage+ 2 car paid off and living expenses you are up there most people aren't making that kind of money.
@@andrewwilson5722 we were making WAY less when we started out! We lived wayyyy below our means! Our income went up gradually, but we’re not making a crazy amount! We just don’t over-spend! We eat at home, buy everything we can second-hand, and I also flipped some furniture on the side here and there. We have very “normal” jobs - we’re far from being doctors or lawyers! Also, it took us 8 years to save up our down payment! Slowly but surely we did it.
@@andrewwilson5722 we are not doctors or lawyers - we have very “normal” jobs! We saved up for 8 years for our down payment, lived below our means, always ate at home, flipped furniture on the side from time-to-time to pay for “extras/special things”, etc…all while donating 10-15 % of our take home pay every year (we’re Christians and believe in giving). While it wasn’t always easy, it was worth the grit and people can do it!
My wife and I paid off our home in June of 2020. I was never afraid of Covid or any of it's variants. What terrified me was that, in America, the government could determine that a business, a church or whatever, was non-essential and close it down. We had 6-1/2 years left on a 15 yr mortgage and because of creating my own side hustle 20 years prior, we had enough money to comfortably pay the house off. Both the lock downs and the masks were so terrifying to me that I told my wife, I don't know where the world is headed but we are going to live in a home that is paid for. No excuses!! I was making $36k at my job and my wife had always been a stay at home mom. 4 months later I was fired after 20 years without severance, unemployment was blocked, and my insurance ended in the blink of an eye. Thank God for a side hustle that now supports my family better than I ever thought possible. Pay it off people!
It is absolutely terrifying what the government has been able to get away with. Take it from someone who grew up in a Communist country. I never thought I’d see it and live it in this country.
@@dbag57 Thank you for asking. Incidentally, I was fired for not putting a dunce cap on my face. I had worked in the classic car restoration parts supply business for 14 years. I learned everything I needed to start supplying nuts and bolts for specific applications from my basement. I wish I could send you my 5 page story. UA-cam censors any effort to communicate more directly. M P Enterprises in NC is a story of working 2 jobs for 20 years to protect my family from my employer.
@@dbag57 Thank you for asking. I found something in the classic auto restoration market that I knew and was able to figure out how to turn into something that would protect my family from idiots. My path to success was very different from what Dave teaches. #1 pray diligently for wisdom. Without it, everything is a waste of time. #2 Trust God for everything. Believe that, through His wisdom, he will lead you in the right direction. Sometimes that journey will be quite painful. #3 Work, work, work. #4 Don't spend money on things you don't need.
I paid off $150k fixed at 3% in early 2023. Could have made $5,000 in guaranteed profit on that cash through tbills, but instead we thought it would be better to pay the house off. Not the worst decision ever, but thinking of the $5,000 does hurt sometimes.
Living debt-free removes so much m pressure from your life. I’m 25 with no debt and about a $250k investment portfolio and a $11k bank account and drive an accord (although it’s only 2 years old) but always nice to have no debt
We paid off our house at 32 and 31 years old. Being completely debt free gives us buying power and many options.. not to mention peace of mind! Fast forward a year and a half later and we’re now sitting on 80 grand while we continue to stash away for our next house (had a few kids so it’s getting tighter!) we’re motivated to stay away from another mortgage and love being able to have plenty of resources to use as we best see fit. For those of you thinking about doing it or trying to find motivation to do it I’m here to tell you ITS WORTH IT! get after it!! Every $20 toward your mortgage counts and serves to drive you forward.
We paid off our 15-year mortgage in February 2011 after 4 1/2 years! The wealth accumulation journey has been amazing since then - as have the charitable giving opportunities!
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Charlotte Grace Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
@@AdrianWilliams-g5dwe were able to consistently pay extra (2x or 3x monthly payment) towards the principal each month. We knew we were heading in the right direction when seeing interest amount in amortization decreasing over time until it reached zero. You can do it too!!
We owe 55,000 on our home my wife and I are on a mission to pay off our home in 1 year and I will throw 10,000 straight to principal that should cut the interest to nothing . Wish us luck 🍀
If more people could learn how small the portion of their monthly payment actually goes on the mortgage balance....and how they could just add *that* small amount more each month....they could be paying TWO MONTHS' PAYMENT every month. They would save a ton on future interest, and cut the mortgage term drastically.
@96ej It's true but unfortunately the first few years are usually the hardest to throw additional money at the mortgage. We didn't really start hitting my mortgage hard until kids were out of day care and then I crushed.
Can you elaborate? I'm 4 years into our 30 year mortgage and would love to know what you mean by that? Are you referring to how much of it goes to principal instead of interest?
@musiqman24 yes 100%, early in a 30 yr mortgage you get killed on interest and not much goes towards the principal. For example, let's say your house payment is $1000 a month, $200 goes to principal, the rest goes to interest & taxes in the early years of the mortgage.
When we paid off all our debt and even our home, and freedom is great! If we did it, you can too. We lived/live on way less than what we make. We have been a one income family (teachers income) since our oldest was born over 11 years ago. And now that all our kids are in school, I substitute teach only when I want to, not because I have to for extra income.
We bought a home six years ago that was half the price that we prequalified for. It’s on acreage and we’ve been improving the property at the same time as paying it down. We’ll be debt free this year. My husband is due to retire in five years. Our plan is to get everything done on the property before then. We’ve had no debt other than a mortgage for decades. We live very comfortably, and don’t get our personal worth from the cars we drive. My husband’s colleagues all drive late model cars and live in high end homes. I can only surmise they carry lots of debt. We have so much peace with our choices.
I an 74 and my husband is 65, we decided to pay off our house because our income would be reduced by 1300 if on of us died. Having the house paid off will make life affordable for the surviving spouse, and we can do it in 4 years.
I am interviewing potential financial advisors, and one of the candidates called me out of the blue the other day and told me to pay off my mortgage vs. finance at 6.5%. I paid the remaining $300K off and will be hiring this woman!
We are 18 mos away from paying off a mortgage which will end up being a 10yr mortgage! We are so excited. It is possible, I encourage everyone to find a way to pay off early. I can't wait to have a mortgage burning party.🎉😂
I love that my house is paid off, it is so nice to own it outright. I commented on this on another thread and was told I only had a small amount of it paid off because I still had utility bills every month. I told the commenter that even if I was renting I would still have utility bills every month, since most rents do not include utilities anymore. Other people bring up repairs and property tax. You’re always going to have to deal with repairs and maintenance though, and I pay my property taxes once a year. I could pay the taxes in March and September but I like to pay them off all at once.
I pay them immediately also Kimberly. A great benefit of having extra money. The people pointing out utilities, property taxes, and repairs sound silly. The sale value of your house is sitting in your back pocket. Now you need a smaller emergency fund also with no mortgage to pay.
I follow Ramsey. I am single income on clerk salary living in So.California. Debt free, house, net worth > $1M. Dave is right. Anyone in America can be a millionaire by getting out of debt including mortgage debt as soon as possible. Imagine, your savings $250K inside a money fund 5% yields $1000 monthly. The bank is paying you versus you paying the bank and making them rich. This is the secret bank don't want you to know, so they keep you in debt that you continue making them rich. GET OUT OF DEBT PEOPLE
What kind of "clerk's salary" lets you become a millionaire in Southern California? I live in SoCal myself, 220K+ doesn't let me even _FEEL_ like a millionaire, let alone BE one.
I live like a broke college student all my life. I eat peanut butter, black beans and NO DEBT to focus on paying off the mortgage. You don't have a money problem.
I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too
You are right! I’ve diversified my portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I paid 100k off on mine , worked two jobs for three years . I’m down to 24k left and I have double that in my savings but now I can’t bite the bullet …. It’s only 58 a month in interest. 2.7 apr .
Paid off our home by 30. We are in Australia so this is AU dollars. Was quite a bit of luck alongside effort (we bought a piece of land for a future home for cheap while living in the cheapest home we could get in the costly city we wee in and by the time we sold our home while aggressively paying down both mortgages, it had gone up in value enough to cover the build and remaining mortgage for our new home). No other debt, now three years into building wealth and have a 1.3m net wealth (about 700k in primary home and the rest in savings and investments). Not far off the US million-dollar net worth status (need about AU$1.5m). So far this has required multiple jobs, a frugal lifestyle and hustling (household income ranging from 75k to 210k throughout this period). Proud of us.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
*@shirleygarland4766* I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
Do your homework and choose one that has strategies to help your portfolio grow consistently and steadily. Camille Alicia Garcia is responsible for the success of my portfolio, and I believe she possesses the qualifications and expertise to meet your goals.
Dr Dave Ramsey I'm 36 years of age meaning I'm a young adult, and I always enjoy watching your show online. You know and since I started watching your show, especially when you teach about the baby steps to getting rich. I can tell you now without being apologetic at all that, you have liberated me from the hands of financial over spending stupidity.😲🔥
Years ago I heard you preach about not purchasing mobile homes or trailers. I bought a sturdy and solidly built mobile home. I am sure you are "preaching to the choir", well some of us do not "sing worth a hoot." There are places in America the only option is purchasing a home you can take with you. I live in Northern Arizona on the Navajo Nation. For many years my family ranches has been in litigation - the Navajo/ Hopi land Dispute. We were told to live like transits, squatters until the dispute is settled. Many of us decided to buy trailers, something we can call home. I was 15 years old when the litigation began, it wasn't until I was in my 50s the dispute was settled. My father's ranching area was awarded to the Hopis. Thank goodness my mother's ranch was awarded to us Navajos. At times I agree with you, but in this case I don't.
The phrase I forgot with being debt free is "freedom." It reminded me of the feeling of owing someone something when my initial debt from student debt came on me years ago. 18:00 Adding that risk in is something I realized no one talks about on this discussion with investing vs paying off debt...another thing not mentioned is the additional money you can invest from not having a mortgage that can start growing quicker from the principle plus interest you no longer owe.
I appreciate that Dave says "I love your zeal for paying the debt off, but don't let it eat your investments and emergency fund." Life has a way of throwing curveballs at you.
I signed up for a 30 year conventional fixed when I bought my home in 2016 to allow more flexibility in making each payment. A year or so ago my feelings changed and there's no way I would spend 30 years paying off a home I bought for $115K. I have my ducks in a row to take no more than 12 total years paying it off.
@@markg999 its pretty low in tennessee thank god i have friends that pay like 3000-4000$ a year and my house looks like a mansion compares to thiers and i py 1300$ a year
I'm debt free and mortgage is completely paid off as of January this year. It is the most liberating feeling. Changes your view about work, life and finances in general. I am no longer bound by these invisible chains. I am able to focus on my investments both in life and finances.
You'd be surprised what you could do with after you save it for a couple of months. One of our back tax houses was only786$ we're hopefully gonna ng to get 200,000 for it this year. Your defeating yourself before you even start.@@aolvaar8792
*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
Investing in many sources of income that are independent of government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
I and my brother have been trading with Michael T Abagnale for over a year and I've made good profit of $86000 that's not much but I'm happy with the progress, I don't have to look for jobs anymore
I want to retire with no mtg. Currently owe 108k I have the emergency funds. I still contribute to 401k. From now on I’m throwing every extra penny towards mtg payoff. Need to be done in 3 years! Btw I don’t have any other debt
I’ve got a 250k mortgage which is interest only , I’m 65 years old , it costs me $300 a month , I used it to buy a house that rents for $3,000 a month and has grown by 10% per year for the past 3 years. So glad I didn’t pay my mortgage off!!
Most financial advisers say don't do this because of tax rebates and putting your money into investments. But you save so much more not paying interest.
Paid our home off early, in like 12 years. The wealth we accumulated since has been staggering. Will hopefully be set to retire at 55. Also haven't bought a car since like 2012, and paid cash for that. Not having a house or car payment is great. I am in position to just pay cash when we finally need a new truck or car.
We just paid our house off a couple months ago. Nice feeling, but not like we gained some big pile of cash monthly when half of our payment was taxes and insurance.
I almost lost my house doing this. After pulling my savings to pay a chunk of my mortgage but not paying off, I broke my legs. I was out of work as a nurse for a year because they needed to rebrake and set my legs every three months X 2 times. I was a prepper so I lasted 8 months but I was 2 weeks from foreclosure, and my credit was ruined.
Got a 30-yr mortgage at 4.77% in 2011. Refinanced to a 15-yr at 2.75% in 2015. Started adding extra payments monthly (my wife and I contributed to the extra payment, I took care of the regular monthly payment). Paid off the mortgage in August 2021. Our net worth and investment went up drastically after the mortgage was paid off. Having the house paid off made it easier when I went through job transition due to layoffs.
Living in Germany, I Paid of our house a couple of years ago, puttng the montly payment in a stock account now, same basic spending money, but more than doubled our saving rate
I am paying about one mortgage payment extra per year. I met with my first potential house hack occupant last week, and I'm hoping I can then add another 6 months worth of mortgage payments and use the rest for continuing renovations.
I’m my jurisdiction we do not have mortgage interest as a deduction on our principal residence, so for me every extra payment on the principal resulted in a tax free gain of the interest saved. The ultimate reward was having a massive increase in disposable income after clearing our mortgage after 15 years.
It feels great to pay off the mortgage. I did it 4 years ago, before covid. Unfortunately you are never without a payment. Its called property tax, or as i call it "rent to the state."
@@aolvaar8792not paying your property taxes sounds like terrible advice. I appreciate what my taxes pay for in our community. All the services I use as a homeowner. The schools that are already underfunded. If I couldn't afford my property taxes I am a living in too much house.
I am 54. Paid my mortgage off 8 months earlier before I was made redundant in December 2023. It was such a relief. I decided to retire and care for my special son full-time. As a single immigrant mom, I worked so hard for over 20 yrs. I also helped my daughter to pay her tertiary fees. I am very proud of myself. 😊
Took a second mortgage on our home. Started a distribution company that is on target to hit 4 million this year. If i sold my shares of the company today I can pay my mortgage over twice. So yes pay your mortgage off if you have nothing better to for your money.
My wife and I are making double principal payments on our house, in the hopes of having it all paid off a year before we retire. No longer using the excuse that "well, you can write the mortgage interest off". Yeah right, that didn't help our taxes a bit because between charitable giving and retirement contributions, we're over the allowed deductions already.
We paid off our house off early for the peace of mind. When Corona hit I wasn’t worried about losing my job. I actually decided to retire last week. It wouldn’t have been possible with a mortgage payment.
That's great.....I bought my house and took my 30 year loan 10 years ago, and if I keep up the extra payments, I will be done in 2 years, shaving 18 years off my 30 year loan....what is your age?
Does the advice to pay off the house change when you have fixed 2.5% interest rate when you can get a CD with 5% rate as investment example? We have more than enough to pay off mortgage.
@@dorotheaanderson9482pay it off if you are are bad with money or scared of the boogeyman man. If you are smart with your money, invest it instead of paying off early.
I’m one of those competitive siblings so when my sister paid her house off 3 years early I was determined to do better! I had strategies and my easiest no brainer one was my husband and I got paid opposite weeks so I was budgeted for 4 paydays a month. A couple times a year there would be a 5 th paycheck EACH that went towards the house. I hated debt and everyone consoled me over the house/mortgage like it was normal but the only thing making me feel better was paying extra!
Question, I have a mortgage rate of 1.18% (still have 8 years left) and the current saving rate at bank is 5%. Will this be beneficial to pay back earlier?
Based on his stubbornness and some research done among billionnaires who all paid off their homes before finding the lock to the front door, DR and his fans will tell you to pay it off right away no matter how much you give away in returns. I'm in a situation similar to yours (the last leg of my mortgage has a fixed rate of 1.05% APR). I'd suggest you rely on your own judgement.
Paid mortgage off 2 years ago both in our 30's. The initial excitement wears off, the best thing about it is knowing you have options and peace of mind. I'm determined to retire at 55 having a million in investments, pension and savings.
I did the math here and it does not make sense for me to pay my house off as early as possible. Early yes, but not to the point where I'm sinking my Roth 401k contributions into paying off my house. Especially with a 2.25% interest rate on my mortgage. I pay an extra $200 a month on my mortgage, which will shorten my 30 year loan down to a 20 year loan. The rest of my hard earned dollars go towards maximizing my Roth 401k contributions to whatever the Federal Limit is. At the age of 55 I am projected to have around 5 million in Roth and my house paid off. Only 20 more years to go!!!
We are 59 and 60 and 2 years ago my husband went into respiratory failure with a diagnosis of ALS. Never walked, eaten, moved , or breathed on his own again. I want to pay off our Mortgage of $285 k but the interest is on,y 2.9% and we have zero income to continue to save. I’m his caregiver 24/7. Wonder what Dave would suggest.
@@janalreyes4086 If you have no income and you have to be the caregiver, it would be to sell the house and down size to where you don't have a mortgage.
If you stop paying the extra $200 each month on your mortgage and invest it in an index fund instead, you'll make a lot more money in the long run because of your low mortgage rate.
Thanks for the link to the payoff calculator. I am paying extra on or mortgage and just found out that it should be paid off in 9 years. Yeah for us! We live on less than $3/month so it isn't like we can dump tons of money on it.
He's right, you want a buffer. I needed one recently when ending up with sepsis resulting in endocarditis. That further resulted in heart failure, liver failure and kidney failure. I was out for three months and thankfully had savings/ leave/ insurance (paid out what I didn't have in leave). I live in Australia so there was no out of pocket costs for my month stay in hospital and two surgeries (including a double valve replacement). Only 38 years old but doing well now :)
Totally, We paid it off in 2017. Gosh my finance has been going upward since then. How much of burden it can be carrying on the mortgage and how things get change so quickly afterwards, it is just amazing! But I have a really cheap house which was why I was able to pay it off quickly.
I have a pretty tiny mortgage at 3.6% (my previous house was paid off, and I just took a loan out on the difference between house 1 and house 2). The actual interest part of my mortgage is $230/month, and the property taxes/insurance part is $490. I feel like I wouldn't be decreasing my base housing expenses much, relative to income, and I see much better gains putting extra money into stocks.
We paid off the house 3 weeks ago and just experience the first month without a mortgage payment. So satisfying to put it into the IRA instead of the banks coffers.
🍻Just remember to pay your property taxes annually! It’s on you to keep track since it isn’t part of your mortgage payment any longer. Having a paid off home is awesome! 🏡
@@jasonleatherwood2172how long does it take for the county to respond? Do they typically just put a lien on a property or can they legally foreclose/take the property for failure to pay?
I paid double payments on the principal for two years. I wanted to be a SAHM. We paid off the mortgage in 11 years on one income. Those two years meant zero extras, but it paid off immeasurably.
2014 when we started our baby steps and 2018 when we’re debt free including the mortgage. We’re still in the budget but we added more to our recreation and vacation envelopes. Sometimes we still feel poor except when we’re on vacation😊
We had so many people try and talk us out of paying off our mortgage after receiving an inheritance. “Keep the mortgage and invest the money!” I said we could pay off the mortgage and use the money we were putting toward the mortgage toward investing. “But you won’t make as much money that way!” Oh well. We were under 40 with 6 children and mortgage free. We feel overwhelming relief knowing that our home is paid off.
Made my final mortgage payment yesterday! 38 and debt free!!!!! Took about 11 years and 4 months to pay off.
That's incredible!! Young and disciplined plus it sounds more realistic to most of us than the less than 5 years people. Good work
Congrats
Congratulations
Wow, I am so happy for you. Well done. Another life is waiting for you now 🥳👍
Congratulations! All those sacrifices paid off! Enjoy your peace of mind 😊
We’ve been paying $1400.00 extra each month on our mortgage. It’s scheduled to be paid off in December 2026…19 years early and we can not wait!
Congratulations!!!
Congratulations!
who cares
@@betsyogle8224rude n miserable!
@@betsyogle8224 lol
We were able to pay off our mortgage this past august. Life has been changed drastically for us. We no longer worry about money and our focus now is saving. We were able to pay it off in 10 years. The remaining balance was 20k and we payed the lump sum. At age 33 with a household income of 120k. I’m very proud of us.
That's wonderful!! Now, are you helping others??
As soon as you demand charity, it becomes tax. As soon as you share your charity it becomes marketing.
So embrace others to it, but don't go after and demand it of them!@@kbanghart
@@kbangharthelping others will be a waste if they use it for drugs
LETS GOOOOOOOOOO!!!!!!
Paid off ours in July, haven't wanted to borrow against since.
I just paid it off this morning! Zero debt. 😃 I'll take the cash, do some upgrades, then get ready to downsize and retire.
Yay!!!!! we just paid it off 5 days ago! We are debt free with a paid off house. the future now is good. I'm happy for you.
Good for you folks. Happy for people that do good work and have a head on your shoulders
8:16 PREACH DAVE 🙌🏽🙌🏽🙌🏽. Paid off my mortgage on 3/7/24. Thanks for the roadmap Dave! Thank you God for sending Dave! To God be the glory for the things the Spirit of God has done!!!
I paid off my house 3 years ago. I literally can now save $60K per year. It's pretty cool, and I am single with no kids or other debts 😊 🎉 best part is I love working and making a 6-figure income. Next is finding someone to share it with. Starting my 40s with a bang 🎉 😊
@@Christian_VillanuevaHe's a guy🤭
@@Christian_Villanueva 🤣
@@Christian_Villanueva Hey! What ever rocks your boat🤭
Just don’t get married, don’t ruin all you’ve worked for
Make sure you have a prenup and live somewhere they're enforceable, or you won't have your house for long.
We paid off our home residence and our rentals. The happiness is real! Now our savings are growing!!
Paying off your house means more than just financial peace. The mental peace you get knowing that you can go to bed at night not owing money to anyone is a feeling of tranquility that is hard to describe.
Amen!
what about property taxes and insurance? :/
Yes, we all know they exist. Thank you for reminding us. They are nothing compared to a mortgage payment.
Amen!
No thank you, especially not for people with sub-3% mortgages. I can arbitrage the rates and buy Treasury bills/bonds or save it in a HYSA and earn more.
It's much better for financial peace if you have the money to pay it off, but have it in liquid assets to easily use it when needed.
Today my mortgage of 175k is being paid off after almost 8 years and feels great 😊
That's great! You have a right to be proud of yourself for this achievement.
@@maryk446 thank you! It certainly is great
be proud be proud major accomplishment regardless of what people say sure u feel it
What was your interest in the mortgage? I also have 180 k mortgage with 6.5 % … the amount of month have to pay in interest is crazy ( fir a 30 year mortgage)
@@andratoma9834 5.4% but I just now remembered that it was a 115k mortgage but I put 60k on the down payment which really helped. And also paid off a 40k work truck during that time
I've been in my home 9 years and got really focused in the last 3 years. I'm looking toward a payoff in mid 2024🎉🎉🎉🎉🙌🏾🙌🏾
Congratulations
Wow
We are there, too! Looking to pay off in Spring 2024!!!!!
@@kimochkaks well done 👏
hope it's almost done
We paid off our mortgage in this November Thanks to Dave’s 7 Baby steps and now we are one of the everyday millionaire because of his teaching! Very grateful that our family future has changed and we are now in Step 7! God Bless Dave and the team and it truly works if you follow his outstanding advice as we have validated it through our own experience to build financial peace and wealth!
Made the last payment on the mortgage 3 weeks ago. We worked very hard to do it and it feels great.
As a 26 year old married guy who just bought a home for my wife and kids and owes $340,000, that debt is daunting! I cant wait to get where some of you are.
Follow the Baby Steps
I feel you but you are also ahead of majority by having a house at your age.
You’ll be debt free and very generous soon. It seems like a long way off but it’s not. Just takes planning with a purpose and focus.
Sell the wife and kids
Congratulations! Follow the Baby Steps.... 15 million people can't be wrong. I'm one of them.
Paying my house off right after Christmas on my birthday!!! I cannot wait! I will be 38 in January!
Paid off my million dollar home 2 weeks ago at age 51. Holy cow I am so happy. No stress. I now have a huge asset to leave to kids. I can now enjoy the rest of my life without a mortgage payment. So many options open up when you don’t have a mortgage payment….
Same here paid off ours just this Feb, though not a million dollar home.😊 Congrats to us!
@@christianburris3474 congratulations!
@@sunshinewolf5980 congratulations!
In the early 1990s, when I bought my first home in Miami, first mortgages often came with rates of 8 to 9% and 9% to 10%, which was quite common. It's important to consider that we may never return to 3% rates. If sellers are compelled to sell, home prices may need to decrease, leading to lower valuations. I believe many others share this line of thinking.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I’ve been worried sick about the current state of my portfolio, who is your advisor?
Melissa Elise Robinson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just checked her out and I have sent her an email. I hope she gets back to me soon
Thank you Dave.
I just paid my last mtg payment last week @ 40 yrs old.
That was my 40 birthday present. Paid my mortgage off. Congrats
That’s impressive af bruh
I currently owe $85,976 on my mortgage loan and I’m aggressively paying down this mortgage at this time. I can hardly wait to pay this loan off. Then I will be debt free! Yessss!
I am almost there with you. I got 94k left.
@@tastysnack1 Financial freedom here we go! ☺️
98k
Omg, 87k here
I owe $230k 😩😩😩
Blue collar here, my hubby and I just paid off our house 2 weeks ago, it hasn’t hit us yet.😂
🙌🙌
Been 💯 debt free for 14 months .. including the house .. glad we did it .. thanks Dave !!
🙌🏿🙌🏿🙌🏿🙌🏿
Also loving it
Having sacrificed and paid off my home years early …. I was able to leave a toxic work environment and maximize the teachings of both Dave and Ken at the same time.
Thank you both and ALL the team at RamseySolutions.❤
What did you sacrifice?
@@IrisP989 The main thing was never buying anything new. Always shopped thrift for clothing and cut out impulse buys. After taking essentials for my wife and children, all available extra funds went to paying down the mortgage……
Now, being able to make the choice to leave when I chose to was life saving and easy.
My life and work has taken a nice turn for the better. I’m with my family more than ever before over the last 7 months . Being around a new and extremely positive work team is amazing.
Finding Dave and Ken has helped me and I listen and read daily to continue to build my family’s and my personal happiness and growth.
Take care. 😊
Thank you Dave!!! I will be done with my mortgage in 3 years. Turn a 30-year mortgage loan into an 8-year loan.
How did you do that?
You are a winner. Paying off your 30 year mortgage in 8 years.
@@Maya-rw3fe you make extra payments. Double payment then any unexpected bonuses or tax return put on your mortgage. Google mortgage payoff calculator. I found one that way. The ramsey one didn't have the 30 year mortgage option so don't use that one if you have a 30 year mortgage. It's so fun! Now I'm super motivated to pay my mortgage off early!
The lenders must be pissed losing all that potential interest.
@@MrBrewman95or they don't care bc they have a ton more properties with interest
We are now 8 years into our current house and in the process of paying it off by end of December 2024!!
Congratulations, honestly how did you do this? Did you have a huge down-payment on the house to begin with?
Yeeeesss.
You're so close 🎉🎉🎉🎉
Where are you now?
Congratulations!!! We paid off our home in 7 years!
Good luck to everyone on their goals this year. I only make 25k and just paid off my 60k mortgage in 17 years. Im still poor, but house payments are the least of my worries
Love this! My husband and I live Canada and paid off our $260K mortgage this past August in just under 5 years! We also cash-flowed 2 vehicles and countless home items (fence, furniture, etc.), and have also paid for daycare and put money away for our childrens’ education funds throughout! We bought the house for $565K, so had saved up a huge lump sum in advance as well. It IS possible! 🎉
Canadian mortgages are weird and punishing.
Of course it can be done if you are making the money you both are making. $52k a year just on your mortgage+ 2 car paid off and living expenses you are up there most people aren't making that kind of money.
@@andrewwilson5722 we were making WAY less when we started out! We lived wayyyy below our means! Our income went up gradually, but we’re not making a crazy amount! We just don’t over-spend! We eat at home, buy everything we can second-hand, and I also flipped some furniture on the side here and there. We have very “normal” jobs - we’re far from being doctors or lawyers! Also, it took us 8 years to save up our down payment! Slowly but surely we did it.
@@herbiehusker1889 agreed!! That’s why we wanted “out” of our mortgage as quickly as possible!
@@andrewwilson5722 we are not doctors or lawyers - we have very “normal” jobs! We saved up for 8 years for our down payment, lived below our means, always ate at home, flipped furniture on the side from time-to-time to pay for “extras/special things”, etc…all while donating 10-15 % of our take home pay every year (we’re Christians and believe in giving). While it wasn’t always easy, it was worth the grit and people can do it!
My wife and I paid off our home in June of 2020. I was never afraid of Covid or any of it's variants. What terrified me was that, in America, the government could determine that a business, a church or whatever, was non-essential and close it down. We had 6-1/2 years left on a 15 yr mortgage and because of creating my own side hustle 20 years prior, we had enough money to comfortably pay the house off. Both the lock downs and the masks were so terrifying to me that I told my wife, I don't know where the world is headed but we are going to live in a home that is paid for. No excuses!! I was making $36k at my job and my wife had always been a stay at home mom. 4 months later I was fired after 20 years without severance, unemployment was blocked, and my insurance ended in the blink of an eye. Thank God for a side hustle that now supports my family better than I ever thought possible. Pay it off people!
It is absolutely terrifying what the government has been able to get away with. Take it from someone who grew up in a Communist country. I never thought I’d see it and live it in this country.
Great stuff. Whats the side hustle?
@@dbag57 Thank you for asking. Incidentally, I was fired for not putting a dunce cap on my face. I had worked in the classic car restoration parts supply business for 14 years. I learned everything I needed to start supplying nuts and bolts for specific applications from my basement. I wish I could send you my 5 page story. UA-cam censors any effort to communicate more directly. M P Enterprises in NC is a story of working 2 jobs for 20 years to protect my family from my employer.
@@dbag57 Thank you for asking. I found something in the classic auto restoration market that I knew and was able to figure out how to turn into something that would protect my family from idiots. My path to success was very different from what Dave teaches. #1 pray diligently for wisdom. Without it, everything is a waste of time. #2 Trust God for everything. Believe that, through His wisdom, he will lead you in the right direction. Sometimes that journey will be quite painful. #3 Work, work, work. #4 Don't spend money on things you don't need.
What the side hustle?
Got my mortgage in February of this year… $409,500
Down to $398k as of today… trying to hammer this out as fast as possible 🙏
I paid off $150k fixed at 3% in early 2023. Could have made $5,000 in guaranteed profit on that cash through tbills, but instead we thought it would be better to pay the house off. Not the worst decision ever, but thinking of the $5,000 does hurt sometimes.
Living debt-free removes so much m pressure from your life. I’m 25 with no debt and about a $250k investment portfolio and a $11k bank account and drive an accord (although it’s only 2 years old) but always nice to have no debt
You are crushing it you are going to be so far ahead in life… I am trying to get to the same position as you…
We paid off our house at 32 and 31 years old. Being completely debt free gives us buying power and many options.. not to mention peace of mind! Fast forward a year and a half later and we’re now sitting on 80 grand while we continue to stash away for our next house (had a few kids so it’s getting tighter!) we’re motivated to stay away from another mortgage and love being able to have plenty of resources to use as we best see fit.
For those of you thinking about doing it or trying to find motivation to do it I’m here to tell you ITS WORTH IT! get after it!! Every $20 toward your mortgage counts and serves to drive you forward.
We paid off our 15-year mortgage in February 2011 after 4 1/2 years! The wealth accumulation journey has been amazing since then - as have the charitable giving opportunities!
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Charlotte Grace Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
The very first time we tried, we invested $1400 and after a week, we received $5230. That really helped us a lot to pay up our bills.
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
This comment section is incredible. Very positive. Very optimistic. Congratulations to everyone on their way!
We just paid off our mortgage last month. It took us 6 years to pay off the 20 years mortgage loan.
How did you do this
@@AdrianWilliams-g5dwe were able to consistently pay extra (2x or 3x monthly payment) towards the principal each month. We knew we were heading in the right direction when seeing interest amount in amortization decreasing over time until it reached zero. You can do it too!!
We owe 55,000 on our home my wife and I are on a mission to pay off our home in 1 year and I will throw 10,000 straight to principal that should cut the interest to nothing . Wish us luck 🍀
55K great price! Good luck!
Did you do it ? I’ve got 40k left … feel the same way 😬 pry for me
If more people could learn how small the portion of their monthly payment actually goes on the mortgage balance....and how they could just add *that* small amount more each month....they could be paying TWO MONTHS' PAYMENT every month. They would save a ton on future interest, and cut the mortgage term drastically.
Especially those 1st couple years
@96ej It's true but unfortunately the first few years are usually the hardest to throw additional money at the mortgage. We didn't really start hitting my mortgage hard until kids were out of day care and then I crushed.
Can you elaborate? I'm 4 years into our 30 year mortgage and would love to know what you mean by that? Are you referring to how much of it goes to principal instead of interest?
@@musiqman24 look up amortization schedule
@musiqman24 yes 100%, early in a 30 yr mortgage you get killed on interest and not much goes towards the principal. For example, let's say your house payment is $1000 a month, $200 goes to principal, the rest goes to interest & taxes in the early years of the mortgage.
When we paid off all our debt and even our home, and freedom is great!
If we did it, you can too.
We lived/live on way less than what we make. We have been a one income family (teachers income) since our oldest was born over 11 years ago. And now that all our kids are in school, I substitute teach only when I want to, not because I have to for extra income.
We bought a home six years ago that was half the price that we prequalified for. It’s on acreage and we’ve been improving the property at the same time as paying it down. We’ll be debt free this year. My husband is due to retire in five years. Our plan is to get everything done on the property before then. We’ve had no debt other than a mortgage for decades. We live very comfortably, and don’t get our personal worth from the cars we drive. My husband’s colleagues all drive late model cars and live in high end homes. I can only surmise they carry lots of debt. We have so much peace with our choices.
I an 74 and my husband is 65, we decided to pay off our house because our income would be reduced by 1300 if on of us died. Having the house paid off will make life affordable for the surviving spouse, and we can do it in 4 years.
I am interviewing potential financial advisors, and one of the candidates called me out of the blue the other day and told me to pay off my mortgage vs. finance at 6.5%. I paid the remaining $300K off and will be hiring this woman!
We are 18 mos away from paying off a mortgage which will end up being a 10yr mortgage! We are so excited. It is possible, I encourage everyone to find a way to pay off early. I can't wait to have a mortgage burning party.🎉😂
Keep it quiet! Don't tell your family and friends! You may regret sharing that info.
I love that my house is paid off, it is so nice to own it outright. I commented on this on another thread and was told I only had a small amount of it paid off because I still had utility bills every month. I told the commenter that even if I was renting I would still have utility bills every month, since most rents do not include utilities anymore. Other people bring up repairs and property tax. You’re always going to have to deal with repairs and maintenance though, and I pay my property taxes once a year. I could pay the taxes in March and September but I like to pay them off all at once.
I pay them immediately also Kimberly. A great benefit of having extra money.
The people pointing out utilities, property taxes, and repairs sound silly. The sale value of your house is sitting in your back pocket. Now you need a smaller emergency fund also with no mortgage to pay.
I follow Ramsey. I am single income on clerk salary living in So.California. Debt free, house, net worth > $1M. Dave is right. Anyone in America can be a millionaire by getting out of debt including mortgage debt as soon as possible. Imagine, your savings $250K inside a money fund 5% yields $1000 monthly. The bank is paying you versus you paying the bank and making them rich. This is the secret bank don't want you to know, so they keep you in debt that you continue making them rich. GET OUT OF DEBT PEOPLE
What kind of "clerk's salary" lets you become a millionaire in Southern California? I live in SoCal myself, 220K+ doesn't let me even _FEEL_ like a millionaire, let alone BE one.
I live like a broke college student all my life. I eat peanut butter, black beans and NO DEBT to focus on paying off the mortgage. You don't have a money problem.
We are paying off our mortgage next week.
How did u do it
I plan to buy my first home cash when I turn 25. It’s a big goal but I’m on track, you can do it if I can. PAY IT OFF!!!!!
I think you'll enjoy that very much if your spending means you'll be growing your saving and investments quickly.
Im 6 years in on my first house 290k mortgage left no car payment…cant wait for that day when my mortgage is paid off
I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too
You are right! I’ve diversified my portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
"Rebecca Nassar Dunne" is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing, i did a quick search and found her web page, i hope she responds to my mail soon
I paid 100k off on mine , worked two jobs for three years . I’m down to 24k left and I have double that in my savings but now I can’t bite the bullet …. It’s only 58 a month in interest. 2.7 apr .
42 years old from Sweden - bought an apartment in 2008, sold it for profit in 2019, bought another one and paid it off in 2024 - thanks Dave
Paid off our home by 30. We are in Australia so this is AU dollars. Was quite a bit of luck alongside effort (we bought a piece of land for a future home for cheap while living in the cheapest home we could get in the costly city we wee in and by the time we sold our home while aggressively paying down both mortgages, it had gone up in value enough to cover the build and remaining mortgage for our new home). No other debt, now three years into building wealth and have a 1.3m net wealth (about 700k in primary home and the rest in savings and investments). Not far off the US million-dollar net worth status (need about AU$1.5m). So far this has required multiple jobs, a frugal lifestyle and hustling (household income ranging from 75k to 210k throughout this period). Proud of us.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
*@shirleygarland4766* I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
Do your homework and choose one that has strategies to help your portfolio grow consistently and steadily. Camille Alicia Garcia is responsible for the success of my portfolio, and I believe she possesses the qualifications and expertise to meet your goals.
Thanks, I just googled her I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Dr Dave Ramsey I'm 36 years of age meaning I'm a young adult, and I always enjoy watching your show online. You know and since I started watching your show, especially when you teach about the baby steps to getting rich. I can tell you now without being apologetic at all that, you have liberated me from the hands of financial over spending stupidity.😲🔥
Years ago I heard you preach about not purchasing mobile homes or trailers. I bought a sturdy and solidly built mobile home. I am sure you are "preaching to the choir", well some of us do not "sing worth a hoot." There are places in America the only option is purchasing a home you can take with you. I live in Northern Arizona on the Navajo Nation. For many years my family ranches has been in litigation - the Navajo/ Hopi land Dispute. We were told to live like transits, squatters until the dispute is settled. Many of us decided to buy trailers, something we can call home. I was 15 years old when the litigation began, it wasn't until I was in my 50s the dispute was settled. My father's ranching area was awarded to the Hopis. Thank goodness my mother's ranch was awarded to us Navajos. At times I agree with you, but in this case I don't.
The phrase I forgot with being debt free is "freedom." It reminded me of the feeling of owing someone something when my initial debt from student debt came on me years ago.
18:00 Adding that risk in is something I realized no one talks about on this discussion with investing vs paying off debt...another thing not mentioned is the additional money you can invest from not having a mortgage that can start growing quicker from the principle plus interest you no longer owe.
I appreciate that Dave says "I love your zeal for paying the debt off, but don't let it eat your investments and emergency fund." Life has a way of throwing curveballs at you.
I signed up for a 30 year conventional fixed when I bought my home in 2016 to allow more flexibility in making each payment. A year or so ago my feelings changed and there's no way I would spend 30 years paying off a home I bought for $115K. I have my ducks in a row to take no more than 12 total years paying it off.
Paid mine off last year its nice to have a bank account with just utility bills and insurance coming out lol
Property taxes...that's a big one also.
@@markg999 its pretty low in tennessee thank god i have friends that pay like 3000-4000$ a year and my house looks like a mansion compares to thiers and i py 1300$ a year
@@markg999 yes, that 650 a year for mine take it's toll.
@@markg999 I live in the Largest American city without a property tax,
My utility bill is ~$700/mo
The City makes money on utilities.
@@markg999 But even with property taxes, it's still much better without mortgage principal and interest payments.
I’m 44 years old, i this paid off my house 4 years ago, i feel much better love America 🇺🇸
While I’m teaching chemistry the personal finance teacher has you going in the next classroom. You give me competition! 😂
Based in UK. Downsizing home and using savings to go from 310k debt to 42k. Will have it fully paid off by end of 2025. 40 years old
I'm debt free and mortgage is completely paid off as of January this year. It is the most liberating feeling. Changes your view about work, life and finances in general. I am no longer bound by these invisible chains. I am able to focus on my investments both in life and finances.
$214/mo would not change much for me.
You'd be surprised what you could do with after you save it for a couple of months. One of our back tax houses was only786$ we're hopefully gonna ng to get 200,000 for it this year. Your defeating yourself before you even start.@@aolvaar8792
*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
Investing in many sources of income that are independent of government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Please who is the professional guiding you? I have lost so much as a beginner Investing into stock and crypto without a proper guidance.
Haven't you heard about MICHAEL T ABAGNALE??
Wow! I'm just surprised you mentioned and recomnended Michael T Abagnale. I thought I'm the only benefiting from his services.
I and my brother have been trading with Michael T Abagnale for over a year and I've made good profit of $86000 that's not much but I'm happy with the progress, I don't have to look for jobs anymore
I want to retire with no mtg. Currently owe 108k I have the emergency funds. I still contribute to 401k. From now on I’m throwing every extra penny towards mtg payoff. Need to be done in 3 years! Btw I don’t have any other debt
I’ve got a 250k mortgage which is interest only , I’m 65 years old , it costs me $300 a month , I used it to buy a house that rents for $3,000 a month and has grown by 10% per year for the past 3 years. So glad I didn’t pay my mortgage off!!
Most financial advisers say don't do this because of tax rebates and putting your money into investments. But you save so much more not paying interest.
Paid our home off early, in like 12 years. The wealth we accumulated since has been staggering. Will hopefully be set to retire at 55. Also haven't bought a car since like 2012, and paid cash for that. Not having a house or car payment is great. I am in position to just pay cash when we finally need a new truck or car.
I’ve been listening to Dave for 20 years. This may be the first time I’ve heard him tell somebody to pump their brakes lol.
We just paid off our house 5 days ago! it is the 4th of July 2024. debt free. we bought it in 2017....refinanced in 2021.
Dave is the greatest advocate for people getting a grip on that money. Thank you sir and God bless you.
We just paid our house off a couple months ago. Nice feeling, but not like we gained some big pile of cash monthly when half of our payment was taxes and insurance.
Gor a 30 yr mortgage. Paid off in 19yrs.
I paid one off in 1 day, I paid cash!
@@AlinaTamashevichI can do you one better my parents bought me a home in cash as a wedding gift.
@@reesercliffmust be nice 😅
I almost lost my house doing this. After pulling my savings to pay a chunk of my mortgage but not paying off, I broke my legs. I was out of work as a nurse for a year because they needed to rebrake and set my legs every three months X 2 times. I was a prepper so I lasted 8 months but I was 2 weeks from foreclosure, and my credit was ruined.
Me too dave, you are so right about budgeting. Feel empowered. On baby step 6, and continue pay extra on the house
Got a 30-yr mortgage at 4.77% in 2011. Refinanced to a 15-yr at 2.75% in 2015. Started adding extra payments monthly (my wife and I contributed to the extra payment, I took care of the regular monthly payment). Paid off the mortgage in August 2021. Our net worth and investment went up drastically after the mortgage was paid off. Having the house paid off made it easier when I went through job transition due to layoffs.
Thanks Dave, I’ve taken your advice these last few years, it feels good not having debt, now I need to get real with my savings plan.
Living in Germany, I Paid of our house a couple of years ago, puttng the montly payment in a stock account now, same basic spending money, but more than doubled our saving rate
With the current interest rates, doesn’t it make more sense to buy long term treasury bonds than paying off these mortgage fixed at ~3% 30 years?
It makes mathematical sense to me.
I am paying about one mortgage payment extra per year. I met with my first potential house hack occupant last week, and I'm hoping I can then add another 6 months worth of mortgage payments and use the rest for continuing renovations.
I recently payed off my house. I payed the last $500k and now debt free. I make 1.2M a year and can finally breathe 🎉
Now you can afford a blow up doll
I’m my jurisdiction we do not have mortgage interest as a deduction on our principal residence, so for me every extra payment on the principal resulted in a tax free gain of the interest saved. The ultimate reward was having a massive increase in disposable income after clearing our mortgage after 15 years.
It feels great to pay off the mortgage. I did it 4 years ago, before covid. Unfortunately you are never without a payment. Its called property tax, or as i call it "rent to the state."
Never is a totality word.
Try using "without exception in the universe".
There are many ways not to pay Property Tax.
Defer
Bond
Exempt
None
...
Yes, you're truly never without a payment. But it sucks paying a mortgage and property taxes.
@@aolvaar8792not paying your property taxes sounds like terrible advice.
I appreciate what my taxes pay for in our community. All the services I use as a homeowner. The schools that are already underfunded.
If I couldn't afford my property taxes I am a living in too much house.
I am 54. Paid my mortgage off 8 months earlier before I was made redundant in December 2023. It was such a relief. I decided to retire and care for my special son full-time. As a single immigrant mom, I worked so hard for over 20 yrs. I also helped my daughter to pay her tertiary fees. I am very proud of myself. 😊
We will be done with mortgage in 3 years. Its a small price to pay, we are so excited to reach baby step 7.
That's great. So what are you doing to help others?
@@kbanghart What are YOU doing to help others?
@@formula112967 lots. But I'm still paying on my mortgage and other debts
Took a second mortgage on our home. Started a distribution company that is on target to hit 4 million this year. If i sold my shares of the company today I can pay my mortgage over twice.
So yes pay your mortgage off if you have nothing better to for your money.
My wife and I are making double principal payments on our house, in the hopes of having it all paid off a year before we retire. No longer using the excuse that "well, you can write the mortgage interest off". Yeah right, that didn't help our taxes a bit because between charitable giving and retirement contributions, we're over the allowed deductions already.
Standard Deduction for us is +$30K.
We paid off our house off early for the peace of mind. When Corona hit I wasn’t worried about losing my job. I actually decided to retire last week. It wouldn’t have been possible with a mortgage payment.
That's great.....I bought my house and took my 30 year loan 10 years ago, and if I keep up the extra payments, I will be done in 2 years, shaving 18 years off my 30 year loan....what is your age?
Does the advice to pay off the house change when you have fixed 2.5% interest rate when you can get a CD with 5% rate as investment example? We have more than enough to pay off mortgage.
No...... Pay IT OFF!
@@dorotheaanderson9482pay it off if you are are bad with money or scared of the boogeyman man. If you are smart with your money, invest it instead of paying off early.
Yes. Why throw away 2x to save 1x?
I’m one of those competitive siblings so when my sister paid her house off 3 years early I was determined to do better! I had strategies and my easiest no brainer one was my husband and I got paid opposite weeks so I was budgeted for 4 paydays a month. A couple times a year there would be a 5 th paycheck EACH that went towards the house. I hated debt and everyone consoled me over the house/mortgage like it was normal but the only thing making me feel better was paying extra!
Question, I have a mortgage rate of 1.18% (still have 8 years left) and the current saving rate at bank is 5%. Will this be beneficial to pay back earlier?
Based on his stubbornness and some research done among billionnaires who all paid off their homes before finding the lock to the front door, DR and his fans will tell you to pay it off right away no matter how much you give away in returns.
I'm in a situation similar to yours (the last leg of my mortgage has a fixed rate of 1.05% APR).
I'd suggest you rely on your own judgement.
It’s a personal choice, but to me freedom and security is worth more than those returns. Once it’s paid off, savings will skyrocket.
@@notroll1279Well said. DR seems stubborn and I often find a lot of his advice lacks wisdom even though he has good intentions.
Which one makes better sense to you? Think about it.
Paid mortgage off 2 years ago both in our 30's. The initial excitement wears off, the best thing about it is knowing you have options and peace of mind. I'm determined to retire at 55 having a million in investments, pension and savings.
I did the math here and it does not make sense for me to pay my house off as early as possible. Early yes, but not to the point where I'm sinking my Roth 401k contributions into paying off my house. Especially with a 2.25% interest rate on my mortgage. I pay an extra $200 a month on my mortgage, which will shorten my 30 year loan down to a 20 year loan. The rest of my hard earned dollars go towards maximizing my Roth 401k contributions to whatever the Federal Limit is. At the age of 55 I am projected to have around 5 million in Roth and my house paid off. Only 20 more years to go!!!
We are 59 and 60 and 2 years ago my husband went into respiratory failure with a diagnosis of ALS. Never walked, eaten, moved , or breathed on his own again. I want to pay off our Mortgage of $285 k but the interest is on,y 2.9% and we have zero income to continue to save. I’m his caregiver 24/7. Wonder what Dave would suggest.
@@janalreyes4086 If you have no income and you have to be the caregiver, it would be to sell the house and down size to where you don't have a mortgage.
If you stop paying the extra $200 each month on your mortgage and invest it in an index fund instead, you'll make a lot more money in the long run because of your low mortgage rate.
Thanks for the link to the payoff calculator. I am paying extra on or mortgage and just found out that it should be paid off in 9 years. Yeah for us! We live on less than $3/month so it isn't like we can dump tons of money on it.
He's right, you want a buffer. I needed one recently when ending up with sepsis resulting in endocarditis. That further resulted in heart failure, liver failure and kidney failure. I was out for three months and thankfully had savings/ leave/ insurance (paid out what I didn't have in leave). I live in Australia so there was no out of pocket costs for my month stay in hospital and two surgeries (including a double valve replacement).
Only 38 years old but doing well now :)
Totally, We paid it off in 2017. Gosh my finance has been going upward since then. How much of burden it can be carrying on the mortgage and how things get change so quickly afterwards, it is just amazing! But I have a really cheap house which was why I was able to pay it off quickly.
I have a pretty tiny mortgage at 3.6% (my previous house was paid off, and I just took a loan out on the difference between house 1 and house 2). The actual interest part of my mortgage is $230/month, and the property taxes/insurance part is $490. I feel like I wouldn't be decreasing my base housing expenses much, relative to income, and I see much better gains putting extra money into stocks.
I agree and my mortgage is 3.0 percent
We paid off the house 3 weeks ago and just experience the first month without a mortgage payment. So satisfying to put it into the IRA instead of the banks coffers.
🍻Just remember to pay your property taxes annually!
It’s on you to keep track since it isn’t part of your mortgage payment any longer.
Having a paid off home is awesome! 🏡
Common sense.
It's like any other bill.
Good advice as some people neglect this/forget! 😊
I literally was like 8 months late this year cause i forgot but its not like people think they aint gonna evict ya for like 3 years lol
@@jasonleatherwood2172how long does it take for the county to respond? Do they typically just put a lien on a property or can they legally foreclose/take the property for failure to pay?
Or start now by not escrowing property taxes. Save up and pay it once a year.
I paid double payments on the principal for two years. I wanted to be a SAHM. We paid off the mortgage in 11 years on one income. Those two years meant zero extras, but it paid off immeasurably.
2014 when we started our baby steps and 2018 when we’re debt free including the mortgage. We’re still in the budget but we added more to our recreation and vacation envelopes. Sometimes we still feel poor except when we’re on vacation😊
We had so many people try and talk us out of paying off our mortgage after receiving an inheritance. “Keep the mortgage and invest the money!” I said we could pay off the mortgage and use the money we were putting toward the mortgage toward investing. “But you won’t make as much money that way!” Oh well. We were under 40 with 6 children and mortgage free. We feel overwhelming relief knowing that our home is paid off.