Should You Pay Off Your Mortgage Or Invest?

Should you pay off your mortgage or invest? Perhaps you’ve got some spare money, either as a lump sum or regularly each month. Should you put this extra money towards getting rid of your mortgage more quickly, or should you invest it? I’m going to give you the numbers and the rationale behind this, so you’re actually informed about it, so you can make a good decision for yourself.

Watch this video I mentioned:

00:00 Intro
00:42 Welcome
01:27 Two sides to every story
02:05 Factor One: Maths
04:57 Factor Two - Emotion
07:08 What should you do?
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Leave me a comment below - I read all of them and love hearing from you!

[Essien-ij]

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.

[jackcro]

I paid my mortgage off early, because peace of mind counts a lot. I felt pay off the mortgage because no one knows what my happen later in life.

[RyanEmmett]

We overpaid on our mortgage to pay it off asap. We didn't want any debts hanging over us. Once the mortgage was paid off then we started saving and investing.

[markdillon]

Overpay mortgage every time for me. The financial freedom and emotional impact (of paying off the mortgage) it provides cannot be understated.

[cristiangirbea]

I just found your video and the fact that you've added Emotional as a Factor, makes me an instant subscriber. I've been watching financial videos for the past 2 years but yours is the only one I feel that is complete. Amazing job!

[justingross]

I paid off my mortgage on my house and rental property in about 5 years. I made the final payment in November 2019. The timing for the shock of the pandemic was sweet. I can now invest more into other investments. I view debt as risk. Eliminate debt, minimize risk. It’s a great recipe for sleeping well at night. Zero regrets.

[Theoriginalramjammer]

“Looking out for my wife’s preferences had other compensations..” Amen brother😁

[KMartha]

I do both. I think the security and freedom that comes with a paid of mortgage should not be underestimatesd.

[russelcurtis]

Cant decide? 50/50. Invest half, pay down your mortgage with the other. Financial choices are usually not limited to either direction.

[mattcameron]

I doubled my mortgage-payments, cancelled all other savings and investments (including pension contributions) and as a consequence made the final payment on my 45th birthday. I regret nothing!!

[allthingsunrelated]

I’ve watched a lot of videos on this on going argument and I think you’ve said it best. Your honesty and added emotional factor is a great point. Thanks for sharing and caring!

[iainhusband]

Brilliant video, having been in the position of having a six figure mortgage, two young kids and two redundancy notices (one given on Monday the other on Tuesday).. it is amazing how focussed you become in clearing your mortgage..When you do, believe me your boss never holds as much power over you as they once did...

[imdomtrotta]

Finally someone that speak with sense, every situation is different, also people can always split the £250 and invest a
portion

[alexandra]

So glad you talked about this. This is the first video of yours that I’ve seen and compared to other videos on finances that I’ve watched it’s refreshing to see someone speak from a realistic POV. Emotions do come into play.

[christopherfaulkner]

This video is why I turn to your channel first. Balanced, not dogmatic, clearly delivered, easy to follow.

[johntatman]

I think age should play are part in this as well. If you're nearing retirement you don't want to be in the position of having to pay a mortgage from your retirement income. Pay off your mortgage from working income and don't plan to retire until that's accomplished. So if you're 50 yrs old or older add the additional money to the mortgage. If you're younger, invest.

[todd]

In the US, the tax math has changed quite a bit in recent years. Before, mortgage interest was the most common reason people were able to itemize their taxes which generated significant tax savings for a lot of people. Now that the standard deduction has been doubled, many people are not itemizing anyway.

[cletuspapa]

I stumbled upon your page and this is the most appropriate and sound advice I've heard! Well Done and thank you!

[ruanrichter]

I found the little smirk with "other compensations" far too funny. Great video :)

[MrByrneyboy]

Hi Pete, great videos. You explain things really well and helpfully. As someone who is looking at early retirement, this is all really helpful. Keep up the good work and ignore any negative ninnies!