Pay Off Mortgage Early Or Invest?

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[CHANCEY-hd]

I started investing in stocks at 18, grew portfolio to $600k by 33. Recently, lost over 30% and want to mitigate risks. Also, plan to pay off my mortgage and want my portfolio to grow. What should I do for stable cashflow?

[joecooklin]

Everybody in Dave Ramsey videos comment section: I paid off my 250k mortgage in 2 hours and it feels amazing!!!

[cosmicninja]

Just paid off our 192k mortgage in under 4 years. Feels awesome!

[jarrettpierce]

Caller: 0% interest
Dave: folds arms

[yit]

Being in debt to a family member is not an “awesome situation”

[albacusBC]

We might be more concerned about paying off our mortgage if it were larger (or if our jobs weren't as secure), but right now, investing offers a better return. Bloomberg and other finance media have been documenting stories of people making over $250k in a couple months.

[rbrucerye]

It's a massive mistake to borrow money from a family member. Even if it's 0% interest your priority should either be to pay it back ASAP (to protect your relationship with that family member) or not borrow the money from them at all.

[SteveRam]

How many already knew Dave’s answer to this one before you even clicked 😁🙋🏻‍♂️

[fljetgator]

Finally!! A caller with a 'real' and typical income & not. . ' oh we make a paltry $350k ... We have probbbblems' .. 🤣

[mrandmrsdogaming]

For some reason people prefer investing on the front end then paying off their mortgage. I prefer the back end method. Payoff your mortgage, then invest. You can still contribute to your 401k/IRA and pay off your home early, then invest in the market. This way, if the market collapses, you still have a house to live in with minimal expenditures (property tax and hazard insurance.)

[dinahsoar]

IRS liens stay with the property...you buy a house with an IRS lien it becomes YOUR debt. How do I know? We were going to buy a building a real estate attorney to handle the transaction and he went to the courthouse to search the deed before writing the contract..called us and advised us not to buy the property, explained how the lien would be transferred to we told the seller why we were not buying his lot, his response was: "I was going to pay it off from the sale of the property" but once the property was transferred to us it would have no longer been his debt!!! ...if we had not gotten a good estate attorney we'd have become the owners of that land and inherited the lien and owed the IRS the back taxes plus the accrued penalties and interest. Lesson learned..ALWAYS USE AN ATTORNEY...and if it's real estate use a real estate attorney.

[LIZZyNIqUZZ]

Thank you Dave you really changed my ways on seeing money. I no longer buy things to impress people that I don't even like or waste money that I didn't have. Now I have a savings account about to be debt free, and living in a house where it's a blessing and not a curse. Thank you! Thank you! Thank you!!!!

[fitybux]

4:37 I absolutely ABSOLUTELY love this part of the show. Dave *thinks* he hung up on the caller already, but he didn't. (After calling the guy's father a crook.)

[maxrice]

The numbers with investing first often make it the more profitable decision in theory, but the practical ramifications of having the debt don't work well with the human soul in most situations. With an $86k mortgage and $20k of debt to my parents for renovations, I'm still debating investing now for a higher return or paying the debt aggressively. Ultimately, I have continued to stay safe and pay the debt off as aggressively as possible. The thought of having no monthly obligations besides utility bills, auto insurance, and phone/internet is so enticing.

[chrisc]

We paid off our home in February 2020 and it is starting to sink in why it is important during COVID 19 challenges. Thank you Dave and Team for sharing your financial wisdom and advice.

[gregchalvatzis]

For me in my situation my mortgage is so cheap its not worth paying off early, I would only save about $250 per month by paying it off !!!! I could make much more by investing the amount I owe instead of paying off the mortgage.

[roblapekas]

Great advise. This happened to us and lost 45k on land a trusted neighbor had. He was 62 got into a legal issue and lost...the property was part of his net income and we learned a very expensive lesson.

[samreagan]

Look at what’s happening right now. It’s better to have a paid for house than investments during a pandemic: you don’t have to sell at a loss to buy supplies, you don’t have to work extra hours to pay for the house you can cut back on work and your chance of getting infected. Investments are the chocolate sauce, whipped cream and cherry. The paid for house is the ice cream, a well paying job is the bowl and your ability to enjoy your wealth is the spoon.

[Dr_Jonathan_Mahadeo]

As someone with student loans who are in different and no other debts.
I feel like, this really applied to me, thank you for sharing.

[allimarieRISING]

I have learned sooo much from Dave. He's been helping people for 25+ years honestly he deserves a nobel prize 🏅