Should You Pay Off Your Mortgage Early or Invest?

Paying Off Your Mortgage Early Is A Mistake. (Or Is It?)

Paying off your mortgage early is an incredible accomplishment and one that you should be very proud of. But in 2021, do the numbers really make sense to do this?

Paying off your mortgage early used to be a badge of honor. Now it could be a badge of financial illiteracy.

Watch this video in its entirety to better understand how paying off your mortgage early could be a mistake given the current monetary policy and economic climate.

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Instrumental Produced By "iAmHaywood" on IG

⏰ Timestamps ⏰:
0:00 - Dave Ramsey & Shelley in Tennessee
0:17 - Introduction
0:48 - Paying Off Your Mortgage Early is a Mistake
2:16 - What is The Time Value of Money
3:27 - Inflation Eats Away Debt
5:48 - The Fed's Balance Sheet & M1 Money Supply
7:42 - Historically Low Mortgage Rates
8:53 - Historic Stock Market Returns
10:56 - Closing Thoughts

ABOUT ME 👇

My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.

Subscribe if you are interested in:
#RealEstate
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

[WhiteBoardFinance]

*If you could pay off your mortgage today, or take that same amount of money and invest it, what would you do? (Let's share this video and get it to 10, 000 likes!)*

[GeorgeAusters]

90% of people don't use the extra money to invest, they just use it to go out to dinner or buy new cars, so for the majority of people - they should pay off their mortgage early!

[stjepanhauser]

Interesting, the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250, 000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current bear market.

[blessingpaul]

Now I have more knowledge about personal finance. I just subscribed to your channel. Big ups to everyone working effortlessly trying to earn a living while building wealth in this recession. I’m 45 and my husband is 51, we are both retired, no debts. We are planning on relocating to Thailand. We are currently living a frugal and financially savvy lifestyle and generating passive income even during this recessionary period. Our commitment to saving and investing in the financial market has enabled us to maintain this lifestyle and continue earning monthly passively through investment!"

[tomf]

GREAT beginning! Paid it off 11 yrs ago, never looked back. Once paid off I started having real money for other investments. I sleep real well. Like DR says…” if you have a paid off house would you borrow money against it to invest?” Me? Oh no

[kennethw]

Paying off my mortgage was the smartest move I could have made. My peace of mind went through the roof and it freed up a lot of capital to go invest with. I would recommend it to everybody definitely for psychological reasons, regardless of the math.

[dm]

We paid off our house 12 years ago following the Dave Ramsey plan. I have never regretted paying off the mortgage. The top two benefits are: 1. Not concerned when a black swan event happens and the economy drops and companies lay off workers 2. Increases cash flow to invest.

[yahyaraz]

No investments are guaranteed but having a home mortgage free is priceless!

[thetravellingginger]

My highest impact as an investor after few losses was when i started looking more critically on how professionals manage risk over generations, not seeking the instant gratification of a temporary dopamine kick

[tonyj]

Good video, very informative. There is a huge feeling of relaxation knowing the mortgage is paid off. Also i recommend paying off the mortgage before retiring.

[Jake.Gentry]

Perfectly explained. You just retracted everything I learned in my first year college finance class.

[scottieas]

Couldn't agree more with the comment posted earlier... No investments are guaranteed but having a home mortgage free is priceless! Amen! Pay off your home and if you lose your job... peace of mind!

[markbailey]

Good take on this subject, Marko. I'm with you on finding the "golden middle". Paying your regular monthly mortgage bill while also investing in a dedicated growth portfolio can be a great way to realize the benefits of cheap mortgage rates as well as the current bull market. Over time, the balance on the mortgage will approach the value of the growth portfolio, and when it does you can liquidate the fund to pay off the mortgage (after taxes). It may take several years to accomplish this goal, but it lets you take advantage of market gains while saving a significant amount of mortgage interest.

[brettchandler]

Solid content, thank you! Looking at switching to a first lien position HELOC on my primary residence, then pay it down until I've got enough available credit to buy an investment property, rinse, and repeat. You can pay extra on your house and still maintain the liquidity to convert your progress into an income producing asset.

[rodrigofernandez]

I have yet to find someone regretting to paid off his house 🏡.

[FinancialBeanstalk]

Intro was PURE GOLD! 😂

A buddy of mine and I have this debate all the time! Sending him this video now.

[toms]

Love the content. I split the baby. I invest about 25% of my gross salary, but I’m also paying enough extra on my mortgage to pay it off by the time I turn 50 when I can retire. If I don’t need to pay a mortgage, I wont need to draw as much from my retirement accounts.

[davidstring]

Thank you for confirming my plans. We got some inheritance, and I've gone back and forth with investments vs paying down mortgage. We'll just do both

[BradFinn]

*Agree 100%. I found my peace of mind came with just going with a 15 year fixed instead of 30 in my forever home.*

[ecan]

Great video & information as always! You should do another one, same premise but with auto loans. I've seen MANY differing opinions lately on that topic too.