Paying Off Your House Early is a Mistake (According to the MATH)

#mortgage #house #investing

In this video I will show you why the math says to NOT pay off your house early. I know this is a controversial subject so please let me know your thoughts below in the comments!

⚠ If everything you believed to be true about money and retirement turned out to not be true, when would you want to know?

There are so many myths and misconceptions around the subject and our goal is to provide you with the FACTS and teach you why it's more important to learn "how to invest" versus "what to invest in."

If I were to send you out to play in a pro golf tournament tomorrow... would you want your favorite golfers clubs or their swing? You see most people out there are selling "clubs" or an investment product without fully educating you on the "swing" of how money works. If you know anything about golf, the SWING is what makes the golfer.

If you believe like most financially educated people that taxes will be higher in the future, what is your plan?

There are only 3 ways to grow your money:
🌱 TAXABLE
🌱 TAX-DEFERRED
🌱 TAX-FREE

Are you going to be reactive or proactive? It really is your choice.
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[yoursafemoneypeople]

Leave some comments below! Do you agree with me? Why or why not? 👇

[raulsanchez]

Paid my house a month before everything went into lockdown with Covid. The first thing my wife & I said to each other was “no matter what happens to our jobs, at least no one can take our house.” THAT was true peace of mind.

[dennissandvig]

Cannot put any price on peace of mind! Payed my house off in 7 years and been investing in the market since the mid 1980s on top of that, if everyone could just invest some money every month we would all be better off. Debt free=way less stress! Stress causes a lot of problems in life. Math or no Math, bottom line, no monkeys on my back!

[landzw]

I’ve paid my house off last year, It’s nothing special but it’s mine at 47 and I feel so much more content and chilled, with way less stress in life.

[dclaet]

I paid extra every year in order to pay my house off early. This way, it was paid off before I retired. I'm so glad that I had the good sense to do this. Now, I can live within my means, have zero debt and zero financial worries.

[glennjsoucy]

My wife and I retired early, and it was made easy because our house was paid off early. You can not put a price on how well you will sleep at night with a paid off house.

[anthonybro]

So keep paying 7.25 percent interest on a 500, 000 dollar mortgage and see how much money that 500, 000 dollar house ends up costing you

[angelamilliken]

In the middle of the Covid pandemic we sold 2 rental houses and paid off 100, 000 owed on our house. We were and still are 100% debt free. Good thing too for one month later my husband lost his job of 20 years because he wouldn't take the jabs. Yes, we are glad we paid off our house but even more thankful we didn't bend. We are doing well, literally.

[toby]

I hate debt. Debt creates stress. Stress destroys health. That's why I paid off my mortgage as soon as possible and eliminated all debt. I could have kept a second property but I hated the stress, so I sold it.

[CameronFussner]

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

[claudiano_jr]

Golden rule: Do not bring debts into your retirent.

[LanaUSA]

Paying off my house was the best thing I ever did ! When I got such with covid and could not work I was not afraid of losing my home.

[Everythingisgoingtobealright]

Being debt free is fantastic, nothing beats it.

[Danny-wdtq]

I just paid my house off recently! In the years of owning my home with debt. I was never once stress free. I am HAPPY... STRESS FREE AND DEBT FREE!!! BEST DECISION I HAVE EVER MADE WAS TO PAY THE DEBT OFF!

[manflynil]

Never go into debt. That's what worked for me. I'm retired at 53.

[brandonpetty]

Making extra principal payments does save you money, technically speaking, without question. The question isn't does it save you money, the question you are really asking is, "Does making extra principal payments save you MORE money than if you were to SUCCESSFULLY invest it?"

[juanvaldez]

It makes sense as long as you can get an investment vehicle that gives you the desired rate of return, but if the mortgage rate is at 6% you will need to invest in a stock, ETF, own a business etc.. those are subject to market volatility and are not FDIC insured, so you may end up losing all or a portion of your investment money.
What is the recommendation, you give us to have that rate of return?

[insomnia]

Most people don’t live in 500k homes and have 500k in their bank account
I have experienced not having a place to live and I refuse to experience that ever again. My mortgage will be paid off as soon as possible.

[Larry_M]

It's obvious you're an intelligent man, and that's great. My conscience, and integrity tells me that if I take out a mortgage (or any bills), to pay it back on time and hopefully as quickly as possible. There is no amount of analyzing and number crunching that can make more sense to me than having no debt. Being debt free is priceless, it may not make me rich, but it allows me to sleep very well at night and have a comfortable fulfilled life.

[alanbuckingham]

The UK used to have endowment mortgages. This was where the mortgage itself would be interest only and you would make payments equivalent to a normal repayment mortgage instead into a managed stocks and shares fund. When the fund was big enough you'd pay off the mortgage after, say, 25 years and have lots of money left over. Endowment mortgages no longer exist because at the end of 25 years people found that their investment had not made enough to pay off their interest only mortgage. This is a practical example covering millions of people, showing why your plan often doesn't work.