How to Pay Off Your Mortgage (Don't Pay Off Your House Early!)

#mortgage #wealth #retirement

In this video I will explain how you should never pay off your house early according to this concept.

People lie - math doesn't!

🎥 Here is a link to the video with more in depth math on this:

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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 this subject and our goal is to provide you with the FACTS and teach you "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?

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

Your explanation at beginning is incorrect, though the house is worth $500k, it’s doesn’t belong to you as the bank who has lended you the mortgage has a lean on it, hence it’s not your asset, it’s the bank’s asset.
Once you pay off the entire mortgage amount, now it belongs to you as an asset.

Secondly, why aren’t you factoring in the interest needs to be paid on the $500k mortgage over whatever time period?

[j.m.b]

Too late for this!..lol..my last mortgage payment is gonna be next week!! And it feels great!!
This is insane, any debt is a liability!!

[pablocortes]

This video is just silly. Why would you want to have a mortgage? Why not be debt free if you can? Personally I believe in paying my house off . But....we all make our own decisions. God Bless💜

[minni]

Doesn't make sense to me so $500K house will cost $412K in interest. That is the true opportunity cost. A house that has a mortgage is not an asset it is a liability.

[Matt-urdm]

If you keep a mortgage all your life you are paying interest. If you pay if off not only does it free us the amount you would have been paying on your mortgage but also any future payments and any interett payments too.

[corykelley]

13 months away from paying mine off will save 7 years in interest 30k plus. people look at the security of owning your own home no foreclosure. these are the same guys who say unlock the cash value of your house to pay your bills don't do it the biggest asset is you owning your home

[timmartin]

With everything in life you can look at it in two different ways. If you pay if off early you might have $1, 500 to invest that would of been your mortage payment. You only have to pay your taxes. Homes are liability but you have to live somewhere.

[DM-wbjv]

But a mortgage is incurring interest which means you are going to be paying more than the value of the house eventually, and you can always borrow against it if you ever had to?! Doesn't make sense to me . Pay off house early and bank your money as if you had a mortgage or stuff in under your mattress!

[TrungNguyen-jjmo]

I’m 42 years old just paid off my home last month, i don’t have to worry about every month payment, save me every month $600 interest

[financiallydisciplined]

Great explanation. I don't understand how people still argue against this... it makes no sense to pay it off early because your money in the house does not make the value of the house go up or down... return on equity is 0% and always 0% and you can easily earn more than 3% (interest rate) on your money and put it to work for you. I would rather have more control over my $

[robertcroft]

I will qualify your argument. I took a big risk to get first my mother and then myself two houses by borrowing against a tiny cheap house left to me by my grandmother.
This was the most stressful time of my life which I would not like to repeat. I Paid them Off then borrowed against these two to buy two rooming houses, then borrowed on long loans to buy more rentals. Moral of the story. Study the Maths but don't kill yourself to save a few thousand £££ or $$$ in interest which your tenants are paying anyway.

[dailstancill]

Two assumptions are not explained. 1. Collaterization
2. 0 capital gains on primary residence. If debt doesn't matter to value then why do real estate investors buy distressed assets (poor physical condition or negatively geared), make improvements, list for higher price & Bank the capital gains? Maybe the FOMO or opportunity cost are in the gains? Installment loans exist because borrowers cannot make single large payments up front. Does that mean the borrower should pay twice the purchase price over 30 yrs for the house?..No. But a retiree living on fixed income does not want a fully mortgaged house during his retirement years. The same dollar generating multiple returns @ low risk is a desirable position & usually occurs through "leverage."

[applechili]

This is a very general view on a complex matter of finances, financial literacy & peoples abilities.

There are quite a few holes in this general/hypothetical view.

Interest. Taxes. Fees. Dues. Insurance. Etc.

These individual categories all eat into cash flow. In order to win $500k (that’s not in a bank) has to be somewhere adding or multiplying in quantity. There are multiple places that come to mind; however, each place comes with a certain level of risk. The same way that any asset can lose value, the same or worse can happen with an "investment".

There are infinite possibilities when it comes to real estate, especially when those assets are paid off or LTV is on the plus side.

That said, James Johnson has some things right & seems passionate about his practice. Therefore, it’s hard to rule all out.

[jkholley]

Lmao, you make no sense. If you owe on it the amount you owe is not an asset. On top of that, if you have a paid for house right now and borrowed 500k today you would have to pay back over a million in principal and interest with a 30 mortgage. Playing the leverage game rarely works out.

[abelmunoz]

I'm not sure why I wasted my time listening to this.

[thomasforsythe]

Great video! Keep up the great content

[scrappychildhood]

I'm considering buying a home cash by the next presidential election I'm working my ass off to make it happen.

[cherylbroadenax]

Following what the bath says? U left off part of the equation: the mortg. Your new math is incomplete. The moment u take out the mortg u distort the math. At your age I am shocked that u even consider this way of thinking. U really surprised me. It is like the far left following science except the part that goes against what their adjenda says. When u leave out the valuable part your math is distorted.

[rob]

Stupid video. We should have ours paid off next year, saving at least £50k in interest! Then we will save hard and possibly invest. One day when we downsize the house we will get cash back for retirement.
Have you ever met Dave Ramsey? 😳🤣