Why You Should NOT Pay Off Your Mortgage Early | Matt Picheny

In this video, Matt Picheny explains why you should NOT pay off your mortgage early. Find out the reasons behind this unconventional advice!
Discover why not all debts are created equal and why rushing to pay off your mortgage early might not be the best financial move.

I've been in the real estate game for 15+ years, and I've learned some invaluable lessons along the way. Dive in to understand the potential benefits of a well-structured mortgage and the magic of positive carry. 🏠💡

Curious about leveraging your mortgage for massive gains? The difference between a 30-year and a 15-year mortgage could astound you.

Sometimes, holding onto debt can amplify your returns and catapult your investment strategy to new heights. Remember: time is on your side. ⏰

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00:00 Why You Shouldn't Pay Off Your Mortgage
01:09 Debt Is Not A Monolith
02:17 A Mortgage Leads To Equity
02:33 A Mortgage Can Help Produce Passive Income
03:09 Time Is On Your Side
03:49 What About The Additional Interest?
04:46 The Benefits of Stretching Out Payments
05:19 The Magic Of Positive Carry
06:21 Winning With Leverage

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#backstageguide #mortgagetips #wealthbuilding #positivecarry #mortgage

[dkay]

I paid off my home last year and the peace of mind that comes with it in times like this is amazing...everyone pay off your move then invest

[Casey-summer]

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.

[keithrichardson]

Everyone don’t fool around with your mortgage, pat it off ASAP. Look how dire things are now. My house is paid off while everyone is freaking out especially about inflation.

[LucasBenjamin-hvsk]

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.

[azteca]

I was single at the time. I managed to save 3 months of emergency funds. 2 yrs after I moved into my house. I was diagnosed with cancer. The following year as I was going back to the hospital and doctors. To check for any remaining cancer cells. New management came in, I lost my job. Fortunately I had that money saved up. I was cleared from Doctors and was able to find another job 2 months later. I cannot stress enough about having an emergency funds. And I did get a 30 yr mortgage. Made extra payments as I could. Stopped making extra payments, when I was going through this. The mortgage was paid off in 19yrs. paying off the mortgage gives me a peace of mind, in case something else happens

[JoseRodriguez-xcwc]

Info is good, music is loud and very annoying.

[Westcoastguy]

Good video. If I were to say though, maybe lower the background music a little bit. For me I'd like to try and do both at the same time paying off mortgage and investing.

[nestorjs]

Right now the interest rate I got from my online savings account is higher than the interest rate I'm paying on my mortgage. Definitely not paying off that mortgage in the near future

[MattByron]

The leverage of a mortgage is like the cheat code to the money printer. I hear people complain about 7% interest rates, but they overlook the fact that real inflation is arguably 5-10%. With this in mind, there's basically zero cost to borrow. Then you factor in tenants paying down the principal, the mortgage interest tax write off, property appreciation and assume annual rent increases - the benefits are massive! Mortgages rock. People just need to use them responsibly. Great vids!

[ringrulepigs]

OF COURSE pay off asap! Only creditors will tell you otherwise. Duh.

[Bobventk]

5:20 you don’t even need a positive carry. Even if you earn the same interest as the mortgage you will come out ahead. Because it’s compounding

[rhone]

Paid off my home this year after only a few years. I'm completely at ease going into this recession.

[fsm]

Pay off asap ! Peace of mind brings much !!

[PraORedd]

in current markets conditions and high interest rate… mortgage payoff is good. Imo

[Mad-genius]

If somebody ever tells you to NOT pay of your mortgage and just invest the money and then proceeds to give you these crazy schemes and techniques....run as fast as you can. Paying off your mortgage is a certainty, investing is far from it!

[stelliform]

I agree. Especially if you still have a sub 4% mortgage. Invest the money you would have used to pay off your mortgage in a way you can access it if needed. Then, eventually, if you need to pay off your mortgage you can. I feel being able to pay off your mortgage gives me the same peace of mind as paying off my mortgage. I don’t worry about it at all. And I get the benefits mentioned in the video. I think Dave Ramsey is wrong on insisting that paying off a mortgage early is always a good idea.

[Klausi]

You are only allowed to pay of your home if you want to take another mortgage.

[dwaynemauk]

Sorry, but the people who should not be doing this, are the ones who will attempt to follow your advice of not paying off the home early, and then will go and spend that money that should have gone to the mortgage, on other things of no appreciating value. And the break everyone brags about regarding "you can write off the mortgage interest" is crazy too. The first 10 or more years of your loan, most of your payment is going to interest. Who benefits from this scheme? Banks, because many people move within the first 10 or so years after buying, so you never get ahead.

We are making more than double the principal payments on our home, and will have it paid off 2 years before we retire. Talking about "debt is your friend" is dangerous talk to the majority of people who are already living paycheck to paycheck, and nothing to show for it. Expensive cars, lates gadgets, expensive shoes, going out to eat all the time, etc, etc etc and put nothing away into retirement. Then expect society to take care of them when old. Right.

[kbotah]

Music gave me a freaking headache. I had to fo find a different video.

[jayjay-bzrr]

Even if you pay off your mortgage, you never really “OWN” anything. Unless you live off grid