Pay Off Mortgage or Invest? Why We Chose to be Mortgage Free

[@MarriageKidsandMoney]

What do you think? Should you pay off your mortgage or invest?

[@wolfejar]

Both! The late great Mr Miyagi from the Karate Kid said. " Find balance in your life" My wife and I just paid off our home last week. She is 40 and Im 39. Along the way we save about 20% in retirement while throwing the rest at the mortgage. Now we can focus on investing and enjoying life in a paid off home.

[@kay203]

Real tough decision... investing ~18% of income and putting everything else on the mortgage (7~9%)... putting me at 25~27% savings rate... not too bad I guess

[@azteca6695]

We paid off the mortgage early. My husband wanted to do that. Since I battled cancer in the past, when I was single and had the mortgage. And recently found another tumor in my kidney. Thankfully, this one was benign. He didn't want me to stress out about the mortgage. In case I had to stop working due to cancer OR any illness. Not having mortgage is a great feeling. And one less thing to worry about.

[@chopshopgames9897]

03:40 I like the point of not having the weight of the debt being more important than the math! Great interview!

[@MarriageKidsandMoney]

Chopshop Games Thanks so much! The emotional benefits of being mortgage free are difficult to calculate. But man it feels great!

[@MP-nj1qy]

This story really motivates me. I'm watching for a second time.

[@MarriageKidsandMoney]

I’m so happy to hear that. I’ll keep the stories coming then! Here’s one that might motivate you too: kzbin.info/www/bejne/mJjJq5anlsR0hNk

[@hotballz72]

Wow...this is the video I've been googling and youtubing for a while. This guy gave me my answer to just save up the money in a hysa and just pay off the balance once it's reached. Thanks for this video😇

[@MarriageKidsandMoney]

So glad to hear this! It’s a smart mortgage free tactic!

[@Pola509]

Definitely have to have a high income in order to set aside enough for a 6 month emergency fund and pay off extra every month, especially a 400k home. We are paying our house off within 9 years and been living in it for 2 years. Doing pretty good!

[@MarriageKidsandMoney]

You are so right! The same principles apply just extend that timeline and you’ll be mortgage free in due time 👍

[@adadogod]

Great content Andy! I'm at the point now where I could use brokerage account investments to pay my mortgage balance off completely. I'm 41 by the way and hope to keep working and investing for a long time God willing. I'm having a really hard time pulling the trigger as returns have been so great these last few years and I know the math on what that pile could potentially look like in 15 years. Tough call but your family's story is so inspiring and has got me thinking that I could do the same for my family too!

[@edfig]

He was better off paying down the principal rather then putting the money aside in a "high yield" savings account. But nevertheless he did it and that's what matters.

[@MarriageKidsandMoney]

It's interesting -- some folks put their "principal payments" into a brokerage account too. That way they have the option. I see the value in giving yourself the choice. I just wanted it to be done - haha

[@hotballz72]

I saw another video that stated "you can't eat equity". Putting your money into the principal balance and having to refinance or sell the property to get it out wasn't a good choice. Banks won't let you if you lost your job or economic downturn. Always can get out if in a savings acct.

[@stevenreilly4812]

What happens in the future if your local tax authority jacks up your property taxes beyond your to pay? I know.. Sounds dystopian right?

[@MarriageKidsandMoney]

Paying your property taxes is always a smart move. I can't speak for Kevin, but I'll still plan to pay them even if they go up. Ours did this year!

[@stevenreilly4812]

Paying taxes is not an option. I was saying if your local (school) taxes are raised to a point where they become unaffordable, you would likely lose the house wouldn't you?

[@MarriageKidsandMoney]

@@stevenreilly4812 Yes, if you don’t pay your property taxes then you will likely forfeit your property to the county.

[@stevenreilly4812]

@@MarriageKidsandMoney so when it all comes down to it, would you really own your house then?

[@MarriageKidsandMoney]

@@stevenreilly4812 ah, I see your point! And yes, i do feel that I own my house. But that’s all up to your interpretation of course. Do I really own my car if I have to keep filling it with gas, paying the insurance bill and registering it with the state each year? Bills, taxes and fees are a part of life. Having a brokerage account that covers life’s expenses with dividend payouts could be a good idea! Maybe that’s a follow up goal after paying off the mortgage