What Is The Best Way To Pay Off My Mortgage?

What Is The Best Way To Pay Off My Mortgage?

Listen to how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Christy Wright, Rachel Cruze, and John Delony.

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[j.mney]

With income of $200k he should just put more to the mortgage each month and get it paid off.

[tewksburydriver]

I don't like this advice personally. Making 200k they should be able to pay extra on the mortgage and keep their current investments. Use your income not what you've already built and should continue to preserve and grow.

[saulgoodman]

Do not touch you investments. You're robbing your future.
Just pay it with your income.

[GolfProWannabes]

70k for 6 month expenses? What in the world would they need that much when they have no debt except their home?!?!

[DanTheMentor]

Like others said, I would just throw extra on the mortgage and be done with it in 3-5 years maybe sooner. If he sells the stocks he’ll be paying long term capital gain tax and the rental would long term capital gain tax if sold. Either route he chooses they are still in a phenomenal financial position! Great stuff

[WhoDevv]

why cash out on investments and pay tax on it when they are making 200k a year?

[melissalopez]

I struggle with this as well because my mutual funds and stocks have been earning 25 to 45% per year the last 4 years. My mortgage interest rate is 2.625. Much as i would like to be debt free, at this point, i am letting that money grow basically 10 fold over the interest charges. I am 59 so by retirement, i hope to have a small chunk left to pay off and have maximized my earnings. If returns on my investments drop, i can always reevaluate.

[TopVillain]

Do not sell your rental property to pay off another home. Just use your income. That rental is an investment that brings in returns every month.

[drunclecookie]

do not cash out investments to pay off a house unless you are in deep financial trouble. Put anything beyond your 6 month emergency fund into the house now, and just pay extra each month with your income.

[authorjohnwquinn]

Paid off my condo last November - feels great!

[lennoxmutterick]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[anniesshenanigans]

DR says get rid of the Investments? They will pay a huge tax on that. At 200K a year they should be able to pay that off pretty quick just shoveling money at it each month. I make less than half of what they do and mine will be paid off in 3 years. Be patient! I am guessing he advised this because they did not say the investments were in a retirement account.

[SmartMoneyBro]

Did Dave just tell this guy to pull from his investments to pay off his home when the guy makes $200k a year? Why not simply lower your lifestyle for 2 years and pay the home off with your wonderful salary + your little bit of cash?

[ridenorthwest]

I feel like Dave dropped the ball on this one... Why pay capital gains on investments? They make 200k a year and only owe 200k on their mortgage with a paid off rental on the side... Just put some cash ontop of the mortgage every month and ride it out... Simple math once they determine how fast they actually want to pay it off.

[dorissteve]

The wisest thing that should be on every wise individual's list is to invest in different stream of income and don't depend on the government to bring in money especially now the pandemic is hitting the economy

[DaveM-FFB]

As I've said before, the goal should be to have no mortgage when you retire. In the meantime, let your investments grow and multiply. That includes your rental property. Otherwise you're building net worth at a much slower rate, and you'll wind up with a smaller retirement nest egg.

[saulgoodman]

So what if it take like 3-4 years longer to pay. Don't withdraw your money to pay off the house faster.
If they had millions of dollars, yeah. But they don't.

[Lon]

If it were me I'd keep the mortgage, leave a 50k emegency fund, invest the rest of that cash into an unregistered ETF or index fund and let it grow, continue to invest in it for another year or two with disposable income until it's worth enough after tax to pay off the remainder off the mortgage. Mortgage free is nice but if the cash is there to cover the debt its not a big risk and having it free has potential value if say a good investment property comes along.

[Wesley-rnoc]

Wait what? Why would you sell appreciating assets and pay taxes then pay off a low interest mortgage? Make it make sense

[xueqinguo]

Sell rental too much work and headaches especially in NYC