When Paying Off a Mortgage Early is WRONG
Normally, the decision to pay off a mortgage early is a matter of personal risk tolerance: You can take the guaranteed "investment return" of eliminating mortgage interest, or you can take a gamble and invest excess cash in the stock market instead - hoping to earn an even higher return.
But sometimes, early mortgage payoff is completely illogical for certain debtors. In 2023 specifically, this is the situation for a huge number of American homeowners. So, are you one of them? Should you pay off your mortgage early? Or should you avoid making extra mortgage payments?
More info on smart debt payoff strategies:
www.tripofalifestyle.com/mone...
More info on paying cash for a house and early mortgage payoff:
www.tripofalifestyle.com/mone...
Video contents:
00:00 - Risk-Reward Tradeoff of Early Mortgage Payoff
02:14 - Who Should NEVER Pay Off a Mortgage Early
04:09 - Should New Homeowners Make Extra Mortgage Payments?
#homeownership #mortgage #investing
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We're Lauren and Steven, and we followed some simple financial guidelines that allowed us to quit our full-time jobs forever by age 29. We created Trip Of A Lifestyle to share the knowledge that changed our lives for the better. All of our content is free.
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Пікірлер: 9
I stopped paying down exactly when I could earn more by just saving those extra payments in a HYSA. I took at extra $200 I was paying and put it into VTSAX. Great video and couldn't agree more!
@TripOfALifestyle
Жыл бұрын
Awesome; sounds like you've got the plan nailed down!
Thanks for this. My rate is 2.25 and I would like to lower my fixed costs but I’m going to hold off until I have a good amount invested within the next 10-15 years. Sub 3% rates are a gift.
@TripOfALifestyle
Жыл бұрын
Sounds like a good plan! Just make sure you invest according to the risks you can afford to take.
Totally understand the concept here. I'm at 2.375% and paying extra each month. Running the numbers, I might gain $1,500 by investing instead at the end of my loan term. I'll keep paying early and own my home outright sooner. Thanks for the thought exercise.
@TripOfALifestyle
Жыл бұрын
Hey, at least you're operating with your eyes wide open! Thanks for watching and considering.
@caseyrichards3212
Жыл бұрын
If someone offered you a loan at 2.375%, would you take the money? It's a literal no-brainer at the current interest rates. Sounds like you don't have much left on your term, but I could think of like 16,271 ways to spend the extra earnings.
I haven’t been so keen on trading crypto and stock lately because I’ve not really made profits..Any idea how I can make good profits?
@TripOfALifestyle
Жыл бұрын
Just an FYI: This appears to be a fake thread created by scammers. Probably best to ignore all the comments under this one.