12 Benefits of a Paid Off Mortgage [Life After Mortgage is Paid Off]

12 Benefits of a Paid Off Mortgage [Life After Mortgage is Paid Off]

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Your home can be a forced savings vehicle, and paying off an additional mortgage can save you thousands of dollars in interest over time, as well as help you raise capital in your home faster. One of the arguments for defaulting on a mortgage is that you can do more with the same money by investing it, as long as the expected return is higher than what you pay in interest on the loan. For example, if you earn a 6% return on your investment and your mortgage is 5%, you have a 1% advantage on your money. So if you pay your mortgage 10 years early by investing in the stock market for 10 years, you're likely to stand out by investing.
As with biweekly payments, you can simply make an additional mortgage payment once a year, or pay an additional amount each month (for example, $250 more) on top of what you've already paid. You can do this by making an additional principal payment each month or by sending a partial lump sum.
This strategy can save significant interest and shorten loan terms, while maintaining diversification and liquidity. Or, if your interest rates are already low, you can save on closing refinancing and just pay off your 30-year mortgage like a 15-year mortgage. If you're paying more than the current rate and can't refinance, it might make more sense to pay off your mortgage.
Paying off your mortgage early helps provide financial stability, and you can save money in the long run by reducing interest. If you plan to get a lower interest rate, refinancing with a 15-year mortgage means you'll pay off your loan faster. By paying more each month, you'll pay off your entire loan early. You may pay a higher interest rate on a credit card or private student loan than on a mortgage, so you can get more value by paying up front.
Also, the closer you get to paying off your loan, the more principal you pay each month, reducing the amount you can deduct. Because most of the monthly payments in the first few years of the loan are interest, they can actually go up. Every month you pay your mortgage, a portion of the money goes toward interest, so the less you pay, the less interest you'll pay.
The amount you save in interest payments by paying off your mortgage early may not exceed the amount you could earn if you invested that money elsewhere. If you have to pay higher payments if you need to, but otherwise find it difficult to pay higher payments, it might make sense to choose a 15-year mortgage rather than a 30-year loan.
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[WealthyTiffany]

Thanks for watching! 😘 Comment below with your favorite benefit of a paid off mortgage!

[Fatnutz]

Paid mine off about 4 months ago at 34 years old. Don't owe anyone any money. Makes going to work alot easier and Im not worried if i do lose my job.

[sheilabenton]

I will be done in 7 days. 30 year mortgage paid in 10 years. I have worked to the point of self neglect. However interest is evil. I am soooo happy.🎉

[kulpatel]

I paid off my home this month
Feel so good

[KateWilliam]

My hubby and I put our first home on a 15 year mortgage and paid it off in 10 years. The year we paid it off was 1991 and although we have moved several times, we have not had a mortgage since then. The freedom and peace of mind from being mortgage (and debt) free has been absolutely wonderful.

[JasonBay-RealEstateInvesting]

I found your channel for this exact topic. I have decided to pay my California Bay Area home ($500K Loan) to zero and will do so tomorrow. So excited! I already own 10 other rental doors so I see no reason not to lock in some ultra security on my main house for me and my family! No car loans, No primary home loan, no credit card debt. My Goodness I'm blessed! thanks for a great channel!!!

[bradbook]

Congratulations! I paid off mine 10 years ago. 😄

[thomaschew]

Until your mortgage is paid off, you actually co-own your place with the bank. And in the poker game of life, the bank always has the better hand.

[onewomanandsomesongs]

We paid off our mortgage back in 2015. Best decision my hubby and I ever made. We were able to save a lot more money for retirement because we had no mortgage payment, and now in retirement, we have no debt. This allows us to live fairly well on a Social Security income, although we do have retirement accounts as well. Great video, and yes, I've heard of the FIRE movement. Yep, sleeping at night is much easier.

[rogerdeese]

I had 60K saved in 2006 and in 2008 bought a foreclosure that needed some work for 52K in South Florida. Sold that house in Nov of 2019 and bought a house in Gatlinburg for 40K that needed work. I figure when I am ready to sell I can get 160K for this house then build my last home as I am about to turn 50. Worked in restaurants all my life and did side work. Electrical, plumbing, handyman, computer builds, and auto repairs for extra cash all my life. I have never had a mortgage and never will have one. Not to bad for a high school dropout. I got my GED when I was 40 just to prove to the kids I could. LOL I also don't have a car payment I drive a 12 year old kia that I fix when it breaks down. In fact did the timing on it a few months ago in my driveway.

[markkwiatkowski]

Overall, I agree with the principle of paying off your mortgage early. When the pandemic hit in 2020, my overhead was really low because I had paid off my last debts shortly before. That drastically reduced my stress level, especially compared to some coworkers who had mortgages and other debt to pay. One thing with which I disagree in this video is that Tiffany said after paying off your mortgage, you can pay extra toward your other debts. Normally, you should pay off your other debts before paying extra on the mortgage, since the mortgage is larger and has a lower interest rate. If you have a $20k student loan at 10% and a $150k mortgage at 5%, you really should pay off the student loan first.

[MT-osfv]

Paid off our mortgage last yr and I concur to all what you’ve said 😊

[cherylbroadenax]

When paying extra on payment, be sure to put extra towards principal

[jefferymccauley]

Hi Tiffany, I married at 22, we purchased a house at 25 for $127, 500 in 2000 with a 30yr mortgage. We then refinanced in 2002 and dropped to a 15year mortgage, then paid it off in October 2017. The monthly payment with escrow was approximately $1500. Now we set aside $250 per month for property taxes (approx 3K per year) My wife and I are both 46 yrs old and it has definitely been a blessing to not have that debt! It enabled us to start maxing out our ROTH IRAs and my 401K.
Jeff

[berthalackey]

I hadn't thought of all of these benefits, thank you Tiffany!

[datnohi]

Im 5k away from this, and actually have the money in the bank to pay it off. Just looking 👀 for motivation to pull the trigger and pay it completely off great 👍 content

[georgewilliams]

Hi Tiffany great news, I just paid off my house mortgage payment in full early last month in March of this year in 2023, and I'm only 40 years old.
Now I can finally get a really good night's rest at night, knowing that I am a free from debt.

Shine sweet freedom, shine your light on me 😂!!!

[PVLocalFirst]

I'm down to $9, 999 and part of the way I got it this low is by paying ahead and then doing the math where I paid 1/4 of my mortgage weekly while at the same time making 13 principle payments a year.

[checkthemikecrophone]

Great video many people downplay paying off mortgage for investing. Investing is risky and goes up and down whereas pay off mortgage is safer and way less risk and high chance of gaining income when paid off.

[athomewithshushana]

This is such great information, thank you. My husband and I are on the road to debt cancelation and financial freedom. We're about to sell our home by Gods grace and walk away with an abundance amount of equity in which We're using half to buy our next home cash, so no mortgage and then using the rest to buy a multifamily investment property. We are so excited and only 42 and 43. We are looking forward to finally slow down on working, putting more time and energy in our business and spending a lot more quality time together with God, our family and friends. Gods way is the best way to financial freedom, to owe no man nothing but love, Romans 13:8-10. So excited!!!!