Do I Regret paying off my House? (6 years later)

This is my opinion on whether to pay off your house. It has worked for me!

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Please consult your on professional, insurance agent, Real Estate Agent, Home Inspector, Financial Adviser and lawyer. I not a financial advisor or lawyer! This is just my opinion.

[dave]

I inherited money about 20 years ago and used it to pay my mortgage off. My financial advisor was adamantly against it, but I did it anyway. I then was able to max my 401k contributions each year. We used the money that would have gone towards a house payment. I worked another 13 years and had a tidy sum put away. It’s not like I was making the big money, but it really helped. Since then we have adopted a totally debt free way of living.

[DerekHeinrichs]

Great video and so many great points! Fully agree with everything. You’re right, it doesn’t need to be over complicated and keep it simple. I recently became debt free about three months ago. Cars and house paid for. At the age of 37 this has lifted such a huge weight off my shoulders for myself, wife, and children. We buckled down for about 10 years to get to this point. It’s worth all the sacrifices for the peace of mind in the long run! Great work Jack ! You speak the truth !

[TFB]

You couldn't be more spot on! I am glad you continue to address this issue. I like you don't believe in putting all of my wealth into a house. Its important to have your own paid off shelter, but not to have all your eggs in that basket. This is why I think some people condemn the idea of having no mortgage debt on your home. After paying off my first house in 14/15 years I have not bought any house I couldn't pay off in 5 years. And I have paid off a total of 4 homes. If I cannot do that, the house price is too high for me! I have always been able to save half of my income despite rent or a mortgage. And I also only buy smaller dwellings because they are easier to maintain in addition to being a preference. A big mortgage is not for showboating: disposable income with no debt is in my opinion. I couldn't feel more free as a risk-averse person.

[edwardrhoads]

you are correct. The "invest don't pay off" crowd always ignore risk. They also ignore taxes. I did a spread sheet for 15 year mortgage vs 30. If I ignored taxes 30 was great. Once I added yearly taxes then the 15 won.

Also, if you pay off your mortgage you suddenly have way lower expenses and a way bigger shovel to invest or to do stuff with.

[reelyakrz]

My philosophy on debt.
Pay unsecured and/or high interest debt (ie credit card) 1st
Work toward the secured and/or low interest debt (ie car, mortgage, etc)
But pay it all off if possible as quickly as possible - sometimes things happen which slow the process down, but don't stop
I agree that debt free is the way to go

[AvobProject]

Another benefit of owning your home outright, is being able to take a nice big standard deduction available from the 2017 tax code change. That may expire in a few years, but I hope Congress keeps it. The itemized mortgage tax deduction was easier to rationalize using back when the standard deduction was only $3500.

[memelc]

Really great experience advice. I agree . Dave Ramsey is questionable, but definitely pay off mortgage asap!! Chunk it off as fast as possible. Then that mortgage money goes in your pocket not banks 😉 then you are not only cash 💰 rich, but peace of mind for any loss of job is priceless ❤

[conniesheraw]

Paying your house off is the best feeling in the world. Worst thing people can do is to borrow against there house.Many older people are forced to sale when spouse dies because of so much debt.

[steveop]

"Zero to millionaire" did it too did similar things that you guys did and it really works - Thanks Jack

[ErikColl]

Solid advice, the risk vs reward of doing other things with the money pail in comparison to a paid off house. Do it, you wont regret it.

[economicdevelopmentplannin]

DC area has more high income job openings versus the cost of a renovated bedroom bathroom suite

I wouldn't buy a primary residence anywhere else globally if seeking to reach financial freedom faster

[laurasamaniego]

Excellent content! I accidentally found your channel and subscribed. I have my residence paid off and I have an investment property with a mortgage at 3.25 interest rates. My question to you is how do you protect yourself against liability from third people e.g slip/fall? I and my friend were in the same situation. I was sue by the same company but my friend wasn't. I was told it was because my house was paid off and they couldn't put a lean on my house and get money out of me but my friend has a mortgage. My friend house was protected by the bank. I have an umbrella your thoughts.
Thanks,
Laura

[randymartin]

Why would anyone ever regret paying off what is likely the biggest and longest debt in their life? 100% equity in a $250+ investment and no mortgage payment? Hell yeah! As long as you have a bit of common sense and don't treat that sudden reduction in monthly expenses like you just won the lottery, it's the best thing you can do.

[DontOvercomplicateItSimplifyIt]

I think the biggest problem with saying to pay your house off early is that people view it as an all-or-nothing type task. At the end of the day, there a many ways of making sure you have that "FU" money handy. With most things, the answer lies somewhere in the middle of paying the house off early, saving and investing.

I am super jealous of the paid off house! I plan on making paying off my house early my highest priority when I reach 40. A family with no bills is a rich family!

[flywithabel]

Paid off my house after 9 yrs last months. No regrets!

[harryw]

way too wordy a video, you can say the exact same thing in 5 minutes and that would be so much better. well in my case, I have a 3.5% fixed 30 year mortgage on my house. And I actually have the money to pay it all off, but a high yield savings account is giving more than 4% in interest! Plus, having liquid money aside really can come handy.. You do need emergency money sitting on the ready. Between having cash on hand, and having just a house but no extra cash, I choose having liquid money standing by, especially if that money earns a higher rate than the mortgage.

[mauicountygis]

For 1%ers using mortgage interest rate/investment return arbitrage to their advantage probably works in most years. But for the 99%, the peace of mind that comes from living debt free pays peace of mind dividends. Yes you still owe property taxes, but as long as you cover that, it is yours in perpetuity no matter what the market does.

[j.p.]

Nothing solid all feelings no talk about tax implications.

[keytolifestyle-]

Except for banned raw milk & no open carry?. Hummm

[masoncnc]

You own NOTHING!!!!
don't pay your land taxes and get back to me on that.