Is Paying Off Your House Early A Huge Mistake? - Ramsey Show Reacts

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[thefaultinourdeathstars]

100% of foreclosures happen to houses with mortgages.

[kathrynstokrp]

Paying off my house was worth every minute of “peace of mind.”

[davidwelty]

In 2008 a lot of people lost their jobs. Their stocks also went down. Guess what happened to a lot of those people who had a mortgage? They lost their homes. The ones who had their homes paid off made it through just fine.

[marietaylor]

The psychological benefits of a paid off mortgage is paramount.

[chickmcgee]

My grandfather lived through the Great Depression, he warned his children and grandchildren that the banker would call your loan at the moment you had no means to pay it off. I lived that situation in 2009 when the FDIC closed our local ag bank. I now live and thrive operating my business and personal life with cash. I watch this videos daily and always learn from them.

[MBD-BDBF]

Its worth mentioning. The Ramsey plan is “financial peace”, peace being the operative word. It is not a profit maximization plan necessarily. In addition to living and giving like no one else, the overarching goal is to take control of your financial situation and dont let it be the cause of stress/pain/anxiety in your relationships.

[Bob-yhir]

Owing nothing to anyone is so freeing. You cannot know what it feels like until you are in that boat. The stress that is lifted off your shoulders is measurable- You feel it !! Looking at our savings account and seeing it grow by thousands of dollars a month is awesome. Having money for trips, fixing things, upgrading things and giving to others gives you a quality of life higher than anything you may have thought it would.

[Ghidorah]

It’s a math vs psychological dilemma. The advice is not wrong mathematically, but George is right from an emotional perspective. Being debt free has a ton of value, but the math says start investing as much as you can as early as you can for compound interest.

[alleycatparts]

Bought my house in mid 2018. Just paid it off 100% May 19th of 2022. The peace of mind you get is unexplainable. You will look different at life when your debt free w/ no mortgage w/ nice income. I recommend everyone to go after it. Pay it off !!!!

[nopenope]

My father told me his mother would tell him the old "a penny saved is a penny earned." but what he learned and told me was "a penny saved is a penny earned because you don't owe it to nobody" Debt is bad, never owe unless your life depends on it.

[chardiemarie]

Also it’s good to note that paying off your home is investing. And your investing in something that you can almost guarantee will give you profit. We bought our first home 7 years ago and when we sold it this past summer, I was shocked that the value doubled. I can’t stress enough how important home ownership is. Besides stability, it is one of your greatest investments. When you pay off your home, you’re not throwing your money away, you’re literally investing in your future.

[SamMose]

Love how she’s says “that’s how personal finance actually works”
Actually personal finance is personal… individual to each person.

[CurieBohr]

This conversation will change as interest increases. Home rates have doubled. Paying off your home to escape interest makes twice as much sense now.

[dynoFF]

I believe part, if not the majority, of the mentality is that people would rather see something going up (their investment account) than something going down (their debt). People think more highly of the amount they “have” rather than the amount they owe

[GabrielMartinez-sdpc]

While owning a home is a blessing, debt no matter cheap it is is still debt. Being debt free is infinitely better than having debt.

[thatshowtoroll]

Paid off my mortgage this January. Haven't regretted it once! Peace of mind doesn't have a price.

[kirkfriend]

Here's a thought, why not do both. If you have an extra $1, 000 a month you invest $500 and you pay $500 on your mortgage. That way if the stock market out performs your mortgage, great. If not you've still saved interest on your mortgage.

Also it's a little more complicated here in the UK since we don't have fixed mortgages for the entire term. The interest rates are generally fixed for 2-5 years, and therefore the interest varies over the lifetime of your mortgage.

[mxerb]

Imagine being completely debt free being a hot take. 😂

[samr]

The biggest anxiety for me when I had a mortgage was losing my job and then losing my house due to not paying. If the advocates of not paying the mortgage off are so set on this idea why not just rent? In the UK the rent is normally less than the mortgage each month so invest the rest of it without the council and other bills. Or if you want get your mortgage interest free? You have a big bill at the end but who cares you have made up the rest in your investments. Or have you? A house is an asset and if owned outright can be used by your family for a better future.

[adelitavalle]

Paying off a mortgage is like getting a good night sleep.