Is Paying Off Your Mortgage Early a HUGE Mistake?

Is Paying Off Your Mortgage Early a HUGE Mistake?

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[Markscott]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

[jvaldez]

So I paid off my house September 2019 at the age of 34 just shy of my 35th birthday. A few months later covid hit and the wife lost her job as a hairdresser. No stress in my household

[johnfortes]

I'M 71- RETIRED AT 58- DOWNSIZED AND PAID CASH - EVERYTHING I OWN IS PAID FOR-I SLEEP VERY WELL AT NIGHT!!

[northwestgardener]

I paid my house off and a year later was injured at work, a paid for house let me sleep like a baby.

[KRscience]

I don't disagree with anything in the video, but I want to point out that the peace of mind of having a paid off house is also worth a lot. You never feel free when you have debt, at least I didn't. When Covid-19 first hit and there was lots of panic, I took great comfort in knowing that my wife and I could lose our jobs, but we wouldn't loose the roof over our heads.

[johnnyh]

I am maxing out a 401K, maxing out a Roth IRA, and paying an extra $400 per month on my house. It's time to get rid of that house payment.

[luckyjim]

Or I am 59 and retired. My house is paid for vehicles are all paid for life is really good.... I have had a few friends pass away in their early 60s. With a lot of money in their 401ks and the stock market in general. They never got a chance to retire. I believe the people get a little caught up with money in the bank and don't want to spend it because they want to make more. Live life and be present.... 👍

[davidtodd]

We paid our house off in February 2016 after 9yrs and many told us we made a huge financial mistake. My wife was diagnosed with breast cancer at age 33 and unable to work six months later. I will never regret my decision.

[emilymacdavid]

Too much focus on retirement though...not having a mortgage allows you to live like you are retired way sooner.

[craiglibby]

There is no price tag on peace of mind. -Zac Brown

Pay off your mortgage hyper early (1-5 years). Then take those payments and invest. Let the market pay you...not you pay someone else.

[anniealexander]

My dad passed when I was 11 years old. Our home was mortgage free. My mom applied for survivors social security benifits for me, my brother, and herself.
I believe Shelia's biggest problem was adjusting her life style. I bet not paying off her mortgage would have ended up in a worse situation. By paying off her mortgage, she realized early that she either needed to adjust to a lower standard of living or get a job.

[ckersh]

You guys have made a good decision by breaking these down into smaller segments, instead of hour-long episodes. Much easier to pick off in smaller bites.

[smacdiesel]

I paid off my mortgage early. Nobody can guarantee the future.

[sethbender]

Debt makes instability. I would rather you be broke with a paid for house then semi broke with a huge house payment

[masterw]

The only variable you forgot to include in the equation was JOB SECURITY... I rather pay-off my mortgage early and invest a smaller amount. Once I’m done with my mortgage, invest the mortgage payment plus the small investment amount. For me peace of mind is KING!!

[ForgeofSouls]

Too focused on the math and not enough consideration on risk and psychology.

[alexdoherty]

Great video, but people really need to realise that a long term mortgage (e.g. 30 years) is only a good idea if you are investing the spare money you have! Not good if you stretch to a 30 year just to buy more house

[bowlinglefty]

Paid off my mortgage early when I inherited some money. Big weight off my shoulders especially since I had a job I was unsure of my future in. We took the money we would have had to put toward our house payment and were able to cover other expenses and put more away for our retirement. We were able to pay extra into our rainy day fund for emergencies and could have used our homeline credit account if we really needed to. This gave us a great peace of mind that we would have never had otherwise.
Some decisions in life need more than just figuring the math.

[es]

9 times out of 10, Melissa spends the extra money on cars and iPhones. That’s the problem.

[princesskaitlinhazelwood]

I did not do Dave Ramsey method. I did not know who he was when I was doing all this stuff. But I am tiring fifty this year and we have a paid off house, 1.5 million in our combined tsp acvounts, two federal pensions and social security, 213k is oldest kids college account and 168 K is our 12 year o!d's account. No credit card debt and no student loans. I think there is something to say about being debt free and having financial assets. It is a slow and steady wins the race.