My Bank Is Telling Me NOT To Pay Off My House!

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[@TheRamseyShow]

Nix the guesswork and scrolling. We’ll connect you with investment pros we trust: bit.ly/3hc6Pgt

[@lancevance2005]

When I paid off mine they acted like a bitter ex-girlfriend. Just gave me a sheet of paper that said loan paid and said bye

[@krogdog]

That’s hilarious!

[@racpatrice]

🤣

[@ellencox8415]

Lol hilarious description and so accurate.

[@LittleMopeHead]

Happened to me too when I paid off an auto loan.

[@vickiewilkins1579]

Make sure you ask for release of lien on your home and register with your county treasure. They tried that with me just giving me a letter and said it was done.

[@ZacharyBuhler]

As soon as you start taking advice from a bank (who’s only interest is to keep you indebted to them) then you have already failed.

[@MARINEJONFIT]

Facts

[@sterlingjarvis]

not always true, but yeah fee income is how we make $.... 'don't pay it off refi!' is the mantra .... don't cash out your home.

[@karenhardie1132]

The bank is not your friend.

[@mastermike3940]

Well said 😉

[@ifeanyiokwuchi1384]

Who's only interest is to earn interest off you😅

[@carlosgarcia-jz3dq]

I always call my bank for their advise, then I do exactly the opposite of whatever they suggest, it always works out great!

[@deborahblackvideoediting8697]

😂😂😂

[@karenfloriano]

Lmao

[@acd1168]

😂😂😂😂😂

[@gabrielrolon8600]

Funniest comment I've read in weeks thank you sir. Banks care about the rich and shareholders, NO ONE ELSE

[@j.m0ney133]

Don’t ask your bank for financial advice 😂

[@johnSmith-uz8nl]

So we should ask you?

[@peters.6343]

@@johnSmith-uz8nl No, but not a bank!

[@harryl7946]

@@johnSmith-uz8nl you do what you want to do. As for me - debt free is the ONLY way to live and grow retirement accounts! I chose freedom. Now - what say you? 🤔

[@saraphillips1038]

Truth!

[@RichWomack]

The difference between what that 140K is making and the 120K is costing should be motivation enough. Write that check and then keep paying that mortgage payment back to your savings account!

[@aaront936]

140k making 10% vs 120k costing 2.5% investing that money is the smarter move.

[@mikebingham9700]

This gut: Dah, how I do that?

[@RichWomack]

Sure, IF he had it invested, but he said it was in savings. Savings accounts don't pay anything.

[@aaront936]

@@RichWomack So if dave actually gave good advice he should have told him to get that money in a low cost index fund.

[@BlakeBake]

@@aaront936 This line of thinking doesn't account for risk, increase in cash flow, and other intangibles. Imagine the money you have to invest when you don't have a mortgage payment. This guy also started a new business, so his risk profile is higher. Him not worrying about lodging expenses is huge.

[@Eye_Witness]

My credit score has gone down twice since I have paid off each of my cars. I don't foresee borrowing any money or financing anything else in the future, so I don't really give a rip what my credit score is. The banks and other lending institutions are not your friend.

[@quixomega]

Never listen to the salesperson telling you not to cancel their service, they never have your interest in mind.

[@DoctorSmartyPants]

Pretty simple. Pay off the house today. Leaves 20k for emergency fund. Then start investing in retirement acct tomorrow. Done. Caller has done a great job!

[@kaitlync.2628]

Love George Camel! I missed him as the host of the show but he's so great as a personality. And this John & George combo is awesome!

[@lynsolorzanoaguilar623]

I dont know about him. He doesn't seem genuine to me. More like a wannabe mini Dave. I know that sounds harsh and Im not trying to be. Not sure how else to describe it.

[@mathisnotforthefaintofheart]

A bank only gives advice for their own benefit. It has always been like that. A bank is a business. And unfortunately nowadays they are less customer oriented than they were 20 years ago. And even then it wasn't that great I fear that in the future banks are going to control the population even more if cash is going to lose ground. I greatly support cash as legal tender.

[@spankynater4242]

When I called my bank and told them that I wanted to pay off my mortgage, they said OK, and then they processed the transaction. I’m not sure what everyone is going on about.

[@batman9512]

Ryan is Scooby-Doo'ing his way through his finances. I'd get on the financial education ASAP.

[@bluelightguy1]

Seems like he is doing better then most

[@ClaxtonBay123]

They didn't answer his why. Dave would dig into the Why. He was just looking for clarity

[@strongblackliquor]

I caught that too

[@mikebrownbassist802]

This show is SO bad without Dave. None of the emotion. I want to hear, “Write a check today and pay that sucker off brother! Can you feel the weight on your shoulders lifted!?! Let’s BUST IT! Get after it man!!!”

[@JohnThePA]

I wouldn’t say it was “bad” but with Dave it would’ve been better

[@johndone8045]

If u feel a weight on your shoulder on your mortgage u should NOT buy the house to begin with

[@gregorysampson8759]

The younger generation doesn't have the passion

[@accbooks22]

It’s hard to beat Dave, but these guys are solid, too!

[@ScottishJazzman]

Don’t make money an emotional issue. That’s most people’s problem as it is!

[@allimarieRISING]

I've heard many people advise this due to inflation and interest rates. I'd love to hear Dave's take on this.

[@frediruafemi2050]

IG?

[@nathanday8414]

"The people who will make thousands of dollars by me not paying off my house don't want me to pay off my house." Ha ha ha be aware people.

[@volleyballvideos6426]

If his interest rate is around 3-4%, then isn’t it better to keep the debt and invest the cash and make 8-10% instead? Net would be earning 4-7% off the money.

[@Gus_Chiggins]

Dave and crew are never going to recommend that, but yes

[@johnSmith-uz8nl]

yes and no. Yes, you are right. BUT there is risk when you invest and there is much less risk if you pay off your investments. Dave has said it (and I agree... don't agree to often) for you to become rich it is a lifestyle it is not about making the most out of your investments... it is much more about LIVING BELOW YOUR MEANS.

[@NoamMota]

He can do what you suggested and he can pay off he’s home .one thing I know for sure though , keeping 140k in savings accounts while doing nothing is stupid

[@nicolejennings8389]

Pay it off. Get the deed. Keep a copy of it.

[@ericcarlin]

“George, I think we’re geniuses.” 😂

[@CarnivoreStork]

You guys should have told him he’s giving the bank around $300 a month in interest On his mortgage. 👈🏼

[@kevinfransen1255]

Without knowing what he started at, how long ago he started, and what his monthly payment is… there’s no way to accurately guess what he pays in interest each month

[@rleonekc07]

Hang up the phone and pay it off. Simple

[@PointsPrecision]

It seems like what would be a good compromise for him would be to put a large portion of that going towards the principal, so he has enough left to feel secure, and then a significantly higher portion of each payment would go towards principal, so he would still get it done alot faster

[@amde8554]

Why would you ask the bank unless you had an early payment penalty on a loan which is typically not the case with mortgages.

[@joechang8696]

I am wondering if the bank is evaluated on percentage of performing/non-performing loans? hence they want to keep a performing loan to keep their record in good standing?

[@greggpurviance7252]

Paying off the house, best move ever

[@SimonTekConley]

You would be surprised at how if you tell a bank you need X, how willing they are to give you 2x, and even if you insist on just X. They keep trying for 2x.

[@joseCalderon1976]

I'll never take advice from any bank about my mortgage or anything else honestly period.

[@johnSmith-uz8nl]

So I got a haircut and then walked into a different hair dresser and asked them if I need a hair cut... what do you think they said?

[@michaelb.8953]

They asked you to learn how to spell haircut.

[@johnSmith-uz8nl]

@@michaelb.8953 haha. My spelling SUCKS.

[@michaelb.8953]

@Anthony Harris Yep!! Life of the party especially when I show up with a bad hair cut.

[@michaelb.8953]

@Anthony Harris Was never even close to being the class clown nor ever thrown into lockers and trash cans or ever bullied for that matter. Now I'm just starting to get bored.

[@ethanriley7763]

The fact that he is 35 and still hasn’t started saving for retirement is more terrifying than a mortgage.

[@machutson5493]

Yep

[@DustinOranchuk]

Not really. This guy could be mortgage-free tomorrow (for the rest of his life!). Then shift basically all of his excess income into retirement. He is so much better off than your typical 35 year old.

[@spinergirlkristie]

Some people lose it in a divorce and have to start over older than him.

[@kuryanthomas1438]

i am just impressed at 35 hes able to fully pay off his house!!!

[@michaelb.8953]

After paying off his mortgage the guy has absolutely no debt and the fact that he did that by the time he was 35 is far better than average person and he has another 35 years to save for retirement with absolutely no debt payments anywhere, he should be able to bank the money away and have millions invested by the time retirement comes around. I wouldn't be worried at all just as long as he sets his next goal on funding retirement non stop ASAP.

[@setha360]

Bank does not want that asset of their balance sheet, and repo it in the future as of 2022 loans with variable interest will not be pegged to LIBOR rates.

[@DemetriPanici]

The nerve of these banks

[@marcenelj]

George can recite the baby steps in his sleep.. He never moves away from it. It's like a cassette on repeat.

[@SalisburySnake]

Dave doesn't pay people to come up with their own ideas, he pays them to constantly repeat his ideas.

[@tcgtpl]

@@SalisburySnake Considering it's Mr. Ramsey's company, that makes perfect sense. You wouldn't go to a Nike store & demand they sell Adidas, would you?

[@matthewferrick3288]

Of course the bank is going to say don't pay your loan off. They want hundreds of thousands more in interest.

[@Takar100]

A lot of folks will say not to pay off the house, and invest that cash. But, if he's going to just sit on the cash, I say pay it off right away. Sounds like the mortgage is scaring him into not doing anything else. For these folks, I would definitely say, pay it off.

[@Yugiboii]

That’s why financial literacy is so important, knowing what to do in certain situation to maximize your return.

[@danielshaffer2609]

I'm very surprised they didn't recommend an emergency fund for the new business, too.

[@socketyellow3]

What’s your interest rate? If you refinanced during the 2.7% I’d keep and put into stocks

[@pyrodoodguy]

This all the way, but they can't say that on this show.

[@brinkmannfilms]

I got 2.35% in a 15 fixed rate. You'd suggest investing any extra cash after the usual expenses and savings rather than pay down the principle?

[@aaront936]

@@brinkmannfilms yes 100% you should.

[@aaront936]

@@brinkmannfilms 10% returns are greater than 2.35% simple interest.

[@MyRottweilerKobe]

That 10% return has dwindled with how much rates have risen in the last year. Interest rates have tripled.

[@courtneyknuth4474]

They probably recommend he talk to a financial advisor because if he invests the extra money vs paying it towards his mortgage, his return in investment is greater than the interest he saves. Additionally, depending on his retirement plans, he made need that money in a brokerage account vs tide up in equity in his house.

[@fsm12385]

Imagine a bank tells a home owner no way don't do it LMFAO

[@ChuckyLarms]

Fixed low interest is good right now. Media will not report on actual inflation numbers. Ditch petty consumer debt but don’t be scared of mortgage debt with reasonable payments that you can actually afford

[@andresvalencia1174]

I think you need to change your bank 😂

[@MikeBova1]

How much is the house worth ? What type of condition ? Property tax ? Maybe pay half of the principal to lower your interest but also have enough money in case of roof issues or flooding

[@johnSmith-uz8nl]

That is why I like having a HELOC.

[@peartfaldo]

pay half and recast.....

[@stevekrueger8386]

Why be in a hurry to pay off a low interest rate loan? Invest your excess money. Dave's advice to pay off the mortgage early cost people millions in their retirement

[@bluelightguy1]

Yes because gambling in the market is always better then being an OWNER

[@mph5896]

With how little that caller knows, I would suggest saving up for your potential IRS audit.

[@neverclevernorwitty7821]

Well duh, they are losing money. We just paid our mortgage off earlier this week, and I didn't ask the bank's permission.

[@jakevb141]

Don’t even pay it off. Start investing ASAP

[@lynnebucher6537]

Self employed should have bigger emergency fund. But he could easily prepay $70-90K of principal.

[@peartfaldo]

yep. then do a recast....

[@DillyDogSays]

Of course your mortgage company doesn't want you to pay your load off early. Less money for them...duh..

[@nilgiridreaming]

Be Done with Debt! Good t shirt slogan.

[@michaelthomas1916]

If wolves could speak, they'd be telling you to leave the chicken coop unlocked.

[@bullonwallstreet]

If you are reading this Ryan I would 100% not listen completely to either side. I don't like Dave Ramsey believes in whole and I also don't like what the banks are telling you and others. Really at this point with interest rates I would refinance to a 30yr mortgage and hold 100% of that cash and invest it. I wouldn't be refinancing into a bigger mortgage just one for 100k to 150k whatever you find "best for you"!!!! Take the recommendations from both sides, but make your own decision. Trust me on this when I tell you. That 100k can be a million within next 5yrs to10yrs done right. You will not get their or as quick without that cash. Just my two cents, but I have a lot of experience in this sector and like I said both sides have pieces of good information, but neither is good for everyone. Take Care

[@kelvingladwin4929]

100k can be a million within next 5yrs to10yrs ??? how? risky investments maybe? not in standard mutual funds. that's exactly Dave's point. if you play with risk you will not win.

[@johnSmith-uz8nl]

@@kelvingladwin4929 Agreed, this guy gives BAD advice. There is only one way to become rich... LIVE BELOW YOUR MEANS and invest wisely.

[@aaront936]

P.lnnn m l

[@abrahamflores2566]

Ill very gladly keep my mortgage forever and keep investing instead. Mortgage is only 10% of my take home pay so its tiny in comparison to someone who has a mortgage at 35% of their take home pay. Live with your means is key

[@slyfoxx2973]

If you owned your house free and clear would you borrow money to invest it?

[@aolvaar8792]

@@slyfoxx2973 If the house next door went for sale for $40K, you should

[@markg999]

True...but its definitely nice being 100% free and clear. Yea I'd retire with more if I kept the mortgage but it wasnt a huge difference not enough to justify keeping a mortgage.

[@baseballconnection8090]

@@slyfoxx2973 Yes

[@JillTrace]

Can we have something like a debit score rather than credit score? That’ll be great

[@peterjackson1383]

I’ve got 350k in high growth stocks earning me 10% or more per year. I owe 140k mortgage at 2.3% on a house worth 600k. And about 20k in emergency fund. I’m 39 and want to retire young. I guess just keep investing while help keep The banks lights on Why would I pay off the house sooner

[@steve99912]

Exactly. Keep doing that and you could pay the house off if you wanted to with stock earnings

[@tcbridges]

I have a $450K home and I’m retired I owe $68k on it at 3.2% and can’t rent for my $824 a month payment. I have the cash but it is making me 4.2% in a account. That is the only reason home is not paid off. Am I wrong in my thinking.

[@ItsMymy]

He would make twice the money by investing all that cash then he would paying off his mortgage Refi with same term your at right now into the 2s Then use all that money in cash to get 5-9% of index funds

[@briankowald6465]

Financial advisors like to say not pay it off if the mortgage rate is low and invest that money with them.

[@peartfaldo]

gee...wonder why

[@DBragg2124]

The fact that he has no idea what he actually makes a year, makes me think this man doesn't pay taxes, and that there is A LOT more to this story.

[@MB-hz7wm]

Of course they would advise against you paying off your house…,advising you against this is in their “interest.” ;)

[@jma81]

My banker said, “I’ve got 150 friends in the financial sector and not one of them would recommend paying off your mortgage early.” I said, you need new friends, I’m paying off my house.

[@codys5727]

I hate when these guys say "if I were you...I'd do exactly what I'm telling you and nothing but". If the guy is comfortable paying all but 40k tell him that isn't what you feel would be ideal but support him and say it is a great step in the right direction. When you say " you gotta do it this way, period" you scare people away from beneficial financial progress

[@drlax15m]

never asked a bank to pay them before. just give them the payments they can’t refuse lol

[@schuylergeery-zink1923]

I love these two together - choose freedom! Aw… adorable 🥰

[@RonaldChapman]

What did he think they were going to say when they called the Dave Ramsey Show? What a wasted call

[@sergioalcala4918]

I have some houses 90 % pay for is a relief not having a payment

[@fsm12385]

The caption is Hysterical!! 😅

[@Spaceysgurl]

How dare you curse out the bank and then want a polite answer 😅

[@mxerb5912]

He pretty lucky since he’s so clueless about finances that he’s in the position that he’s in.

[@harryl7946]

Nail head strike right there! Good call ☎️

[@patrickchilds5486]

He’s likely not filing taxes! Odd not knowing your income.

[@greencase]

Prob works for cash

[@youtuber6185]

Why would he invest 15% of his income into a 401K and other's stock when he can buy and sell machinery. I'd pay off the house and use the increased income to flip machinery.

[@tofuhunter3797]

The comment about having a high credit score was ridiculous. I do disagree with the Ramsey philosophy on not needing a credit score at all because I think it is important to get a good loan for a house. But once you have a paid off house you 100% do not need anymore credit.

[@wickedbird1538]

Bankers give advice that benefits bankers, not the customer. Once this guy determines what he needs as an emergency fund, the rest should pay down that mortgage.

[@dcamnc1]

He needs to commit to the baby steps first. Half-butting it is not the way to go.

[@carlosgarcia-jz3dq]

Darn, if I had a 120k mortage with 140K in savings, I would run to wipe out my mortgage, what an incredible priviledge.

[@greekperspective2076]

I invested a few k and made god money from it. With his 100k I would if invested it right after the sale of the business. That money is losing value in the savings. Had he invested that money it would of been worth at the least a half million. And i would continue to invest until I couldn’t work than sell the house and buy the condo. Why pay off the house when you’re young when the interest is already in the mortgage so he’s already going to pay the interest in full on the house anyway. Since he doesn’t know how to invest paying off the house wouldn’t help him anyway since with the free money he wouldn’t know what to do with it. And would save 100k and in ten years be at the same place he’s at already

[@link2299]

Paying off a house you live in is a bad idea in almost every case. The missed opportunity costs are astronomical. Watch literally any other financial advisor and they will say this. That $120k should be used on an investment opportunity.

[@SunAtNight731]

Did they ask what other debt he had...?

[@kenesha8656]

I have 403b as a teacher do I still need a 401k or Roth?

[@bobbyb7672]

The bank making money off his loan and making money off his savings account. Of course they don't want him to pay it off...

[@ransom182]

LOOK AT THE BOOKS! You need to pay attention to your revenue / expenses / profit

[@lynnebucher6537]

He should have a much better handle on his financials than this.

[@livingunashamed4869]

Why would he need a higher emergency fund if makes less? Should be opposite.

[@ASLunar]

Because if a major emergency happens it would take longer for him to replenish the cash, leaving him even more vulnerable.

[@livingunashamed4869]

@@ASLunar Its the same math lol. If you make 30k and your EF is 10k vs making 100k and your EF is 33k.

[@ASLunar]

@@livingunashamed4869 True but I'm guessing the expenses in his area won't change. So property taxes, groceries, health insurance, etc. will be the same, in which case it'd take longer to reach 10K if he's only making 30K because he has less disposable income to save. That's my best guess though.

[@johnSmith-uz8nl]

@@ASLunar No, the rule is 3 - 6 months of your expenses... PERIOD. Nowhere does it talk about how much you make. THIS WAS BAD ADVICE.

[@lancobear8894]

We are in a world where interest rates are at historic lows but they're telling you not to borrow almost free money? How do the rich get more rich? With almost free money they buy assets that cash flow and gain capital appreciation.

[@MyRottweilerKobe]

Two years later and interest rates have more than tripled. Still feel the same way?

[@fsm12385]

Pay it off dude

[@glizz2188]

Sounds some like illegal stuff here 🧐

[@martin2514]

If you believe the bank you are a fool. The bank make money off your mortgage. GET YOUR HOUSE PAID OFF!!!

[@aaront936]

10%compound interest>2.5%simple. Paying off your house early is a terrible "investment".

[@williamerazo3921]

Of course they want that interest rate

[@theraddadinvestor1000]

Because your bank is actually intelligent lol

[@AnOriginalYouTuber]

When you're wealthy, you don't need loans.

[@cashisqueen3825]

The shark also would tell you not to get out of the water.

[@kennethroyer9949]

I hate to be kill joy! IMO their advice is based upon a lack of information. The caller is self employed and yet has no idea how much money he is making nor do they know in regards to the business if there are any fixed costs?? is he married? If he is married do they have children?? Is he divorced?? So many questions all not said nor answered! Without drilling down into these details they are giving advice by the seat of their pants. My advice - based upon the limited information - is for him to keep on working his butt off making as much as he can and then go into what I call the "back and forth" method. One month put more into savings next month make TWO PAYMENTS on the house. Back and forth till the house is paid off. This guy has a small business he needs to play his cards close to the vest. Just as the advice is flying by the seat of their pants so is the caller. Bottom line...Their advice STINKS!

[@wemustdissent]

Im kind of shocked you guys recommended he pay off his mortgage without asking him what his income was or what the apr on his mortgage was. Especially given that he said he had zero investments. That really seems like bad financial advice.

[@georgewagner7787]

On more than 100k the monthly interest is hundreds of dollars. He will save all that.

[@wemustdissent]

@@georgewagner7787 i understand how loans work. But you can do better than a few hundred dollars with 100k. Paying off low interest debt if it completely depletes all your liquidity doesnt make sense to me.

[@captainblando]

You guys could start a new show called "Dave Ramsey's minions"

[@alexr3950]

Well, in a sense they are right. You could make more money investing if your interest rate is low on the mortgage.

[@terrancewatson7915]

Investments aren't guaranteed. But a paid off house is.

[@wendellhanes1]

This is bad advice he should not be paying off this mortgage now He needs to invest

[@murphyville]

Pay it off…

[@Gus_Chiggins]

He’s not paying the house off. Just saying

[@Rainman9753]

When someone is beyond babysteps....well done son. Give Ramsey and associates your leftover money ....lol

[@mikesawyer4707]

If he were smart enough to save a hundred and twenty thousand dollars. He should have been smart enough to know what to do.

[@aaront936]

Saving 140k in a savings account that pays .05% isn't smart. This guy has no idea how to use money.

[@internetpeople1064]

Pay the house off. If you make 50k a year zero mortgage will benefit you. Duh.

[@Lilbit2215]

I dare a bank to tell me what they told him. Sounds like this dude fall for anything someone tells him