Invest or Pay Off The Mortgage? I Was Shocked!

The title says it all: The Truth Will Shock You: Invest or Pay Off Mortgage? The big question for every homeowner is: Should you invest or pay off the mortgage? Without a doubt, I was shocked from the analysis. I walk through the process of paying off a mortgage in todays rates, a future rate of 4%, and I also consider those of us that have bought our homes several years ago. Investing in the S&P 500 in ETFs like #voo #vgt and anything in #artificialintelligence could have huge payouts over time. But you can't discount the feeling of having a home fully paid off early. Lets review it together.

𝐓𝐨𝐩 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬

MY EQUIPMENT

00:00 - Intro
01:18 - Problem Statement
01:52 - Model
02:50 - ETFs
04:02 - Example
08:23 - Consideration
08:52 - 4% Option
09:10 - Existing Homeowners

LET'S CONNECT:

#investmentstrategy #investing

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All opinions expressed by Brian are solely provided as content. Do not treat any opinion by Brian as gospel that needs to be recreated. Brian is not a fiduciary or financial advisor. All financial topics are for illustration where the outcomes are not guaranteed or expected. There exists real risks in all forms of investment, so do your homework and make your own decisions.

[Johnsonchamp]

*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*

[KatieMcCormick-]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024 investing with Katherine Stewart

[enochmunoz]

Just purchase my first home this year and was wondering this exact thing. With $600 and a 6.625% Interest rate. Thanks Brian!

[DaveCulbertson]

I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer

[erikjeanes]

I've watched a ton of these mortgage vs invest, and I think yours is one of the best because you highlight such an important part... paying off early then investing that mortgage amount into the market wins out. Not to mention, what if the market is flat for a decade, then you still get guaranteed returns paying the house faster.

[FfGud-bu]

*I had problem comprehending trading in general. I tried watching other YouTube trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to follow

[luckyme]

Had a 30 year mortgage… paid it off in 9 1/2 years… instead of paying the bank every month I pay myself.

[svenhuber]

The problem is that some loans cannot be paid off early or you have to pay penalties for paying off early the first 3-5 years. That happened in my case, technically I can pay off my loan at any time, however the first 3 years that would cause a penalty interest, so that the payoff exceeds the "possible" winnings on the stock market. In my case you can pay off as much as you can, I saved 23 years of payment because I could pay off within 7 years. And the risk that the market does not perform as expected then paying off early is better anyway.

[fromthebirchwood]

I am 28 years old and lost my dad about half a year ago and I am going to receive some money soon. Would it be smart to grow my money in stocks for few years while I am in college and then invest in rental properties afterwards, or should I go for real estate investing first?

[robyn_southafrica]

Another amazing video, Brian!😀
But wait, am i right in thinking that doing the biweekly payment thing on the mortgage is kinda like DCA'ing into the stock market instead of paying a 'lumpsum' every month?? 🤔🤯

[rjm]

How do you account for the tax savings by writing off your mortgage interest?

[rohp]

Brain.... House price here is $890, 000 and int rates at 6.89%....

[deeblack]

I paid off mortgage early. Super happy with the decision

[ccrr]

Any income from the investment has to report tax. So 8% is not enough to offset the lost of interest .

[sauravchaudhury]

in present times, every high yield savings account is offering almost 4.5% interest rate ..in this situation with 2.7 % mortgage int rate, should the mortgage be paid early?

[shellygiani]

What are your thoughts on small caps which are due to explode into potential blue chip (ie HPQ Silicon)

[jackdorian]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.

[davnkes]

My bank unfortunately offers bi-weekly but they hold on to the payment to the actual due date. so they still get me with 30day amortization. Otherwise, i would have to do it manually.

[damienjudson]

Loved this content!! 3% mortgage here. Owned home for four years. Mortgage is $1200 I pay $1500. I’m thinking about going to money in market instead. Ugh tough decision…

[TitleWaive]

Enjoyed the video. Appears your mortgage payment is just Principal & Interest without Taxes and Insurance included (you included it as $0). So, your math is correct. I've seen other videos on this and after paying off home they invest the PITI payment vs. just PI amount because you still have to pay taxes and insurance. I wish videos like this clearly defined mortgage payment as a novice may miss the taxes and insurance.