Being in real estate, we help people purchase lots, homes, and rental properties all the time. The majority of our clients use a mortgage to buy their homes. Some mortgages are 15 year and some are 30 year terms. Regardless of the length of the mortgage, house debt is typically the largest debt people carry. So should you pay off your mortgage early? If so, why?
To answer this question, I will let Dave Ramsey give his opinion. In this clip he is talking to a woman in San Diego, CA. She and her husband are making good money and want to know if they should focus on paying off their sizable mortgage or focus on investing their extra money.
Before watching the clip, how would you have advised the woman? Do you agree with Dave Ramsey? Has he changed your view at all?
I find it interesting because carrying a mortgage is definitely an acceptable, almost expected form of debt in the United States. However, focusing on paying it off early can save you tons of money!
Have you ever done the math? You can now with Nerd Wallet’s Payoff Calculator. Plug in your numbers and it can tell you how to reach your goal. The one element that might convince you to try is comparing the savings over the life of the loan.
Without a monthly mortgage, every family would have stability with the knowledge that they own their home. Additionally they would have the cash money in their pocket instead of sending the amount to the mortgage company. They of course can save or invest that same money for their future.
Are you motivated to pay off your mortgage early? Dave Ramsey would definitely approve.