Pay Off My Mortgage or Keep Financing?

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

[dynamicphotography_]

We recently paid off our mortgage early, and it felt amazing.

[eplugplay]

Its true what Dave says its that simple. Took us 8 years but we are mortgage free for the last 2 years. We lived below our means, paid off our mortgage and we now have 0 debt of any kind. Saved up 2 year worth of emergency fund, max out our retirement accounts yearly, fund 2 kids 529s, and even taxable account with extra $$ per month. I'm 40 this year and wife 35 and hit 1M net worth when I was 39 and mortgage paid off at 38. Formula works and especially now with recession I have 0 anxiety at my job and life is wonderful!

[RossLemon]

It's not that it's boring, but rather most people are impatient and want get rich quick solutions.

[re]

Dave is correct. Its about being out of debt for 90% of all US taxpayers. Why? Americans in general are bad with money and most do not have a financial plan. Carry no credit debt ie pay it off monthly, get rid of the auto loans and pay off / down that mortgage. Wife and I paid off our home last year and we felt this huge relief. We have no auto loans, use one CC each month for the cash-back and pay it off in full. We are now able to save $1000+ in our 401K each month. Glad we listened to DR.

[ctrl_alt_del]

I bet it feel good my friends called me crazy cause I decided to buy a foreclosure for 60k then took me about 3 years and another 60k to get it livable but now I have a beautiful house and no mortgage

[scottz]

Four years ago I sold my five bedroom home, then used the equity to trade down to a three bedroom condo, paying cash. Got laid off due to COVID one year later. Decided to switch careers. Can't imagine the stress of unemployment and a career change if I still had those big housing costs looming over my head. The borrow is servant to the lender.

[jaytea]

Pay it off! It’s the best feeling ever! Cars too.

[cmedina]

The caller sounds like bill from “king of the hill”

[gloriaalex]

Sure, I'd like to become a millionaire. Working on it. But to be known as someone with "good walking-around sense" is hella valuable.

[TonyRome]

I paid off my home 81/2 years early and saved $52, 000 in interest. I see it as stopping the bleeding and not being owned by a bank. I have no dreams of granduer and live beneath my means. I am very grateful for the average life I live.

[edmalts]

First caller. lol 😂. It doesn’t take a genius to figure out. PAY EVERYTHING OFF LOL 😂

[stevencole]

I think for most you are not going to invest more with a financed house which is debt investing. More than likely that money will be spent elsewhere so paying off your mortgage as quickly as possible when the principal is relatively high to get maximum benefits . I think it's funny people said I paid of my 30 year mortgage in 30 years and my house is worth so much more than it was when I bought it but we forget the interest we paid in it making most 30 year mortgages are a net loss for many residential properties . Others add ons are property taxes, insurance and maintenance . A house is not an investment first and foremost and many times a liability but a necessary one as shelter is needed . What's key is most have much more house than what is needed .

[gina]

Mr. Ramsey makes me laugh every time he says tic tac😂😂😂😂😂😂😂😂

[c.pizarro]

Hi! Thank you for all your help and wisdom. Where can we read the millionaire study you guys did, please?

[joeriveracomedy]

I leased a car and I saved a WHOLE lotta money on the front end. No complaints.

[RobinGKT]

In my opinion, there is no greater comfort than knowing you own your own home. No one can take it from me.. except of course the tax guy. Everything else, comes later.

[stephencullum]

A few years after I retired I paid off my house. I looked at what the cash stream of my mortgage was worth . It took a lot less money to pay it off. It was better even after paying the higher taxes on that money.

[gomperhooblet]

Took my first mortgage at 27 and set a 22 year term, keeping to it and not staying in this game forever!

[chumbawumba]

Ever hear of "equity jail"? That's where your money ends up when you pay off the mortgage. Especially these days, when you can get CDs and MYGAs paying way higher returns than your existing PI on mortgage - if considering the longer term. Or ... put that money in short term treasuries (make a ladder with reinvestment). Any way you look at it ... its a financial planning decision, not a 'feel good' decision to be debt free. Being debt free is always the goal, but sometimes ... the journey is about building wealth.

[markmurrell]

I do that reverse engineering thing about everyday when deciding on purchases/selling things.