Paying Off Your House Early is a Mistake (According to the MATH)

#mortgage #house #investing
In this video I will show you why the math says to NOT pay off your house early. I know this is a controversial subject so please let me know your thoughts below in the comments!
⚠ If everything you believed to be true about money and retirement turned out to not be true, when would you want to know?
There are so many myths and misconceptions around the subject and our goal is to provide you with the FACTS and teach you why it's more important to learn "how to invest" versus "what to invest in."
If I were to send you out to play in a pro golf tournament tomorrow... would you want your favorite golfers clubs or their swing? You see most people out there are selling "clubs" or an investment product without fully educating you on the "swing" of how money works. If you know anything about golf, the SWING is what makes the golfer.
If you believe like most financially educated people that taxes will be higher in the future, what is your plan?
There are only 3 ways to grow your money:
🌱 TAXABLE
🌱 TAX-DEFERRED
🌱 TAX-FREE
Are you going to be reactive or proactive? It really is your choice.
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👇 Use the links below to connect with us further and to get more education or to set up a 1 on 1 no-cost, no-obligation appointment with James where he can review your current plan and give you more clairty, balance and focus going forward.
💻 www.yoursafemoneypeople.com
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[@yoursafemoneypeople]

Leave some comments below! Do you agree with me? Why or why not? 👇

[@TheBelrick]

Ive always known this. Without even watching your video yet. The $ in your pocket is the most valuable it will ever be. That is why banks encouragement fast repayments. Let inflation (the stealth tax shared among ruling... elites. cough) pay off your debt. Use your $ for your own gain not theirs. Paying off 30 year from now debt with today's money is going long on the dollar and that is stupid

[@camwalker1186]

you do not HAVE the house asset, the BANK has it, debt slave.

[@yoursafemoneypeople]

@@camwalker1186 Thank you for your comment. If everything you thought to be true turned out not to be true, when would you want to know? 1 - the asset grant deed is your in your name not the banks 2- if you choose to pay it off please do as that will help you sleep better at t night 3- always do the math because the math says you should keep it financed the choice is yours keep smiling!

[@TheBelrick]

@@yoursafemoneypeople the deed is our names but the banks are the ones that can send in the army of the interior to seize the property. Remember the banks motivations, they are not out to own property. Or earn $ They seek to seize a percentage of workers income. That is why they care not for inflation.

[@Joce123]

I will not pay off my house because I do not want that asset to be taken by the nursing home should I have to move there. I give my children cash every year in small ways...paying for children/grandchildren mini-vacations...gas cards for college aged ..

[@dennissandvig2148]

Cannot put any price on peace of mind! Payed my house off in 7 years and been investing in the market since the mid 1980s on top of that, if everyone could just invest some money every month we would all be better off. Debt free=way less stress! Stress causes a lot of problems in life. Math or no Math, bottom line, no monkeys on my back!

[@rosecampion4337]

And if we had sound money, we could actually save and not have to get on the hamster wheel of “investing”.

[@somethingclever1234]

Exactly! Paid off my house as a priority and extremely happy I did, no need to make the banks richer

[@bluwng]

Amen. This advice is actually dirty all he wants is to game the system with debt. You don’t own the house the bank does.

[@strategicconsensus]

I don't see any advantage to dying rich and debt free. Neither you assets nor your liabilities join you in the afterlife.

[@RetrieverTrainingAlone]

We did the same paid off our house in 10-years on a 30-year mortgage. Saved over $200,000 in interest payments and peace of mind being debt free. Plus when we retired and downsized, the revenue from selling our bigger house was tax-free.

[@glennjsoucy9052]

My wife and I retired early, and it was made easy because our house was paid off early. You can not put a price on how well you will sleep at night with a paid off house.

[@yoursafemoneypeople]

Congratulations

[@glennjsoucy9052]

@yoursafemoneypeople Thank you. I agree. Mathematically, it doesn't make sense to pay off your house. But, I have never met anyone who regretted paying one off early. 😊

[@audryk.7825]

Paying off your mortgage faster would make you save on interest that would have benefited the bank

[@yoursafemoneypeople]

@@audryk.7825 Thank you for your comment - do the math you pay either way. If you want to learn how this applies to your situation reach out and leave your check book at home calendly.com/jjsafemoney/appointment

[@nonhlanhlamkhonza4263]

​@@yoursafemoneypeople❤

[@landzw]

I’ve paid my house off last year, It’s nothing special but it’s mine at 47 and I feel so much more content and chilled, with way less stress in life.

[@yoursafemoneypeople]

Congrats! I’m simply stating the math. It’s ultimately your choice

[@randomname931]

you/we don't own anything. miss a tax payment and the town will repo your house.

[@subspace666]

@@randomname931 tax payment should not be a problem if you know what your doing or are subjected to a force majeur/very bad luck.

[@randomname931]

@@subspace666 not when the tax rate is 2% and the house value more than doubles in 10 years for someone on a fixed income.

[@subspace666]

@@randomname931 not really a problem ether if it doubled and you cant afford tax payment then just sale it. i never heard of a property increasing in value being a problem for the owner , only for the people wanting to buy one.

[@dclaet1135]

I paid extra every year in order to pay my house off early. This way, it was paid off before I retired. I'm so glad that I had the good sense to do this. Now, I can live within my means, have zero debt and zero financial worries.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours.

[@menesesal]

This is the typical thinking the average person has. What he is saying is explaining financially why is better to have a payment. And not use your own cash to put it o a house that will not increase in value because of it

[@vice4134]

@@menesesal But you end up paying more in interest which could end up in double of what you paid back to the bank.

[@madhupai9683]

That is precisely what I thought. But when I saw the math, seems like if you invested the funds that you would have otherwise paid to the bank, you eventually end up richer owing to the power of compounding.

[@thisweekmetaverse]

Ive done similar to what is suggested in the video. I have a 20 year mortgage but I invested ling before buying. My mortgage is $145000 usd remaining. By not paying it down and investing my investments are currently worth $200,000. I am not paying off my house, im getting about 6.35% reinvesting interest and capital on half of it and other half is in funds crypto and other asset classes. If I lose my job tomorrow, i can cover the mortgage payments and keep investing. And this is the key point. If you pay off your house, and you live in it, you have a house. If you invest, you have a house, investments, money to cover all eventualities.

[@CameronFussner]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

[@leojack9090]

The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.

[@parrish8386]

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@yoursafemoneypeople]

@@parrish8386 if you believe the only way tp make money is the market then this would be true but there fixed rates out there today at 6% and if position your funds correct for taxes your nets can be much higher in the end

[@hasede-lg9hj]

in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

[@lowcostfresh2266]

my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

[@raulsanchez4493]

Paid my house a month before everything went into lockdown with Covid. The first thing my wife & I said to each other was “no matter what happens to our jobs, at least no one can take our house.” THAT was true peace of mind.

[@yoursafemoneypeople]

And that is a fine argument. It’s the only one that makes sense. Peace of mind is a gift. But mathematically paying it off early is not the best way. Thanks for your comment

[@anthonybro1]

So keep paying 7.25 percent interest on a 500,000 dollar mortgage and see how much money that 500,000 dollar house ends up costing you

[@drogon2988]

Exactly. This guy is an idiot.

[@sylviesko4235]

You end up paying about 125% of the original value on a 30year loan. So you buy your own house and you buy a house for the bank! Banks love guys like in the video. Investments make more sense to keep mortgages for longer, but not the principal first home.

[@richardabel2402]

But you are overlooking the time value of money, and inflation

[@angelamilliken2992]

In the middle of the Covid pandemic we sold 2 rental houses and paid off 100,000 owed on our house. We were and still are 100% debt free. Good thing too for one month later my husband lost his job of 20 years because he wouldn't take the jabs. Yes, we are glad we paid off our house but even more thankful we didn't bend. We are doing well, literally.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours.

[@Orryv]

Very good decision

[@shufflesilver]

Well done to you and husband, for all decisions you stated

[@jamesfneubauer884]

Your example about the earthquake and you owe a million and just paying interest only and your neighbor house is paid off owes nothing , both total loss, end result is the same ,insurance pays the house paid off & the house that is being paid interst only is paid off by the insurance company to the bank, that said both even. Now, write off for interst only limited by IRS deduction, house paid off no IRS deduction and did receive a benefit of how much would he have paid in rent if he rented his house VS cap on interest cap paying interest only ? The owner who paid his house off can take short forms standard deduction along with the added benefit of not paying a monthly rental fee or interest only loan. Conclusion, better off not borrowing money because that's how banks make money.😊

[@yoursafemoneypeople]

@@jamesfneubauer884 If everything you thought to be true turned out not to be true when do you want to know?

[@Danny-wd3tq]

I just paid my house off recently! In the years of owning my home with debt. I was never once stress free. I am so....... HAPPY... STRESS FREE AND DEBT FREE!!! BEST DECISION I HAVE EVER MADE WAS TO PAY THE DEBT OFF!

[@yoursafemoneypeople]

Congratulations - quick question what did you do with the house payment?

[@sherirottweilersforever7772]

@@yoursafemoneypeoplemy husband would buy a fishing boat.

[@yoursafemoneypeople]

@@sherirottweilersforever7772 That's called the Parkinson law your expenses will keep up with your income.

[@Uncle-Basil]

@@yoursafemoneypeople Yup, no growth.

[@Anonyme67]

@@yoursafemoneypeopleyou are a bully. The point is the house being paid off. Now the can use that extra money as they want.

[@manflynil9751]

Never go into debt. That's what worked for me. I'm retired at 53.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours.

[@HELLWARS101]

Paying off my house was the best thing I ever did ! When I got such with covid and could not work I was not afraid of losing my home.

[@toby9999]

I hate debt. Debt creates stress. Stress destroys health. That's why I paid off my mortgage as soon as possible and eliminated all debt. I could have kept a second property but I hated the stress, so I sold it.

[@yoursafemoneypeople]

The beauty of this country is that the choice is YOURS! Cheers

[@SLHJR0390]

this is useful advice for dual income couples with kids because they typically have student loans to pay off too. I know so many couples that tackled the house first and the interest savings was literally the balance of their student loans. they tackled those next, and now they arent living in an interest driven world and they have excellent credit scores should they chose to use credit. The idea that throwing a hundred or more thousand dollars (depending on your home value and loan terms) out the window to interest ... its just a plan to live for someone else for the next 15 -20 years, or more.

[@yoursafemoneypeople]

@@SLHJR0390 Thank you for your comment - Congratulations you get it, feel free to reach out. calendly.com/jjsafemoney/appointment

[@frankarteaga3765]

Hating debt = heating money as money = debt. Unfortunatelly, this is the monetary system in which we all live.

[@yoursafemoneypeople]

@@frankarteaga3765 Thank you for your comment the choice is always yours.

[@loueckert4970]

This plan is BS. I feel MUCH better off with a paid-for home.

[@yoursafemoneypeople]

Congratulations the choice is yours

[@insomnia9999]

Most people don’t live in 500k homes and have 500k in their bank account I have experienced not having a place to live and I refuse to experience that ever again. My mortgage will be paid off as soon as possible.

[@yoursafemoneypeople]

Thank you for your comment. If you watch the video again all the way through you will find out that paying off your house as fast as possible is the point, just don't pay it to the bank.

[@mjs28s]

Seriously? Tell me you didn't pay any attention to the video without saying that you didn't pay any attention to the video.

[@masoncnc]

I do

[@Gamesso1slO0l]

@@mjs28s the video is a sales pitch.

[@travismartinson1813]

You could be down to your last year before paying it off and if something happened to where you couldn't make the payments you would lose it. If you invested the money, you could sell some investments every month or take a loan against them and make your house payment. To me it's much safer to not pay the house off early unless I could pay it off all at once, but even then that's a huge opportunity cost because I could have the money invested making me more money instead of being tied up in my home.

[@mr.rodriguez3908]

If you don't own that house you do not own the asset. The bank does. All you own is the amount of equity you have into the house. You cannot sell that house without the bank getting their percentage of ownership off the top. You cannot borrow against that house beyond the equity you have into it. Thus, a 500k house under a mortgage is not a 500k asset that YOU own. You are only borrowing it from the bank until it's paid off.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours. It is not necessary to risk your money to make money. Feel free to reach out.

[@Everythingisgoingtobealright]

Being debt free is fantastic, nothing beats it.

[@yoursafemoneypeople]

Nothing against that. Congrats. But using other people money to build more wealth for yourself is also satisfying

[@Larry_M6790]

It's obvious you're an intelligent man, and that's great. My conscience, and integrity tells me that if I take out a mortgage (or any bills), to pay it back on time and hopefully as quickly as possible. There is no amount of analyzing and number crunching that can make more sense to me than having no debt. Being debt free is priceless, it may not make me rich, but it allows me to sleep very well at night and have a comfortable fulfilled life.

[@yoursafemoneypeople]

Thank you for your comment. Please consider this if you have $500k in the bank and owe $500k you still have no debt anytime you want. In addition you have safety liquidity and can be making a rate of return . How you pay for your house is entirely up to you but paying it off is merely a emotional decision, not a financial one.

[@georgedreher2322]

Bingo Brother - you nailed what most people want. NO Debt & stress-free sleep!

[@Uncle-Basil]

@@yoursafemoneypeopleMaking your money work for you is not something everyone will understand, some folks just want a peace of mind being debt free. As for me, I am already practicing what you taught in this video and it allows me to maximize my money for other investments, which I would not have otherwise.

[@yoursafemoneypeople]

@@Uncle-Basil Thank you for your comment - congratulations on getting it the next step is tax free growth

[@drc3po]

​@@yoursafemoneypeopleHow many people have a savings account balance equal to their mortgage balance? Spoiler: None of us!

[@kbikerider8474]

Paying off your home early is ALWAYS a good idea. Forget the debt cycle proponents. No payments= happy life. If you want to mortgage up, get some income property and let the tenants pay the bills.

[@stacy9497]

It is not ALWAYS a good idea. He just explained in the video why paying off your mortgage is mathematically not in your best interest. If it helps you to sleep better at night then it might be better for you. I prefer letting my 2.75 percent mortgage go to full maturity without paying one cent in extra payments. In thirty years, my $1,500 payment will seem like pocket change after inflation.

[@yoursafemoneypeople]

@@stacy9497 Exactly! and if you put the extra principal payments in a side fund growing tax free you will know it out of the park.

[@GTOberfest]

​@@stacy9497Yup.

[@Gamesso1slO0l]

@@stacy9497 the first part of the mortgage you arent paying off any principle, its all interest, paying more and paying it off early allows you to tackle principle which then eliminates interest payments.

[@Gamesso1slO0l]

@@yoursafemoneypeople and you just happen to sell these side funds right?? good god Im so glad I left the financial advice game many moons ago.

[@MarekThatGuy]

I will point out one serious mistake in the video: Negative taxable rental income. If you have that, you pay for mortgage interest out of your pocket. Let's say the interest rate is 7%. If you make a mortgage prepayment, that's guaranteed 7% return on the money because it's the interest you won't have to pay every year. In order to make the same return in the stock market, you would have to make 10% capital gains return before taxes, which is 7% after taxes here. So making the mortgage prepayment gives you annual return that's equivalent to 10% capital gains in the stock market. Once the mortgage is prepaid enough that the taxable rental income changes from negative to positive, it's no longer profitable to prepay the mortgage further because the interest payments are fully deducted from taxes here.

[@johnfranks5985]

Most of you don’t get it… I have a full mortgage and keep my money in investments. It more than pays for the interest on the mortgage and I used the interest paid to enable me to write-on my taxes. The net is I am positive income after mortgage payments. I totally agree with this video.

[@yoursafemoneypeople]

Thank for you seeing the point!! At the end of the day it’s more important to have full control of your money to take advantage of other opportunities as long as you are actually doing that 🤙

[@claudiano_jr]

Golden rule: Do not bring debts into your retirent.

[@yoursafemoneypeople]

Platinum rule - there is such a thing as good debt. Don't invest where is is not liquid, not safe, and does not have a rate of return.

[@mike867]

I don't know anyone with a $500,000 mortgage and $500,000 just sitting in a bank. Everyone I know with a mortgage has maybe a 6-month emergency fund sitting in the bank(that's for emergencies only) and they pay the mortgage off as quickly as they can as money comes in over time (decades). Give me the peace of mind of a paid off mortgage ... every single time.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours. But think about this if you owed $100,000 on your house right now and you had $100,000 in a side fund growing tax free getting the gains of the market not participating in the losses. Would you use it all to pay off your house today? Really think about it.

[@PhoenixTide69]

​@@yoursafemoneypeopleyour math is wrong though. What about the additional loan fees when you take money out against your home? The numbers aren't the same unless I pretend that the additional fees don't exist.

[@loganmedia1142]

@@yoursafemoneypeople Investments attract tax too.

[@alanbuckingham8788]

The UK used to have endowment mortgages. This was where the mortgage itself would be interest only and you would make payments equivalent to a normal repayment mortgage instead into a managed stocks and shares fund. When the fund was big enough you'd pay off the mortgage after, say, 25 years and have lots of money left over. Endowment mortgages no longer exist because at the end of 25 years people found that their investment had not made enough to pay off their interest only mortgage. This is a practical example covering millions of people, showing why your plan often doesn't work.

[@MrSham61]

Soo true! People are suckers for free money.

[@TheLinkedList]

Exactly, this guy is making big assumptions about investments always being greater in returns than interest rates on houses. The two are not always linked, as the markets fluctuate far more due to a lot of unpredictable factors. Housing tends to be based on supply and demand

[@daeseanboyd]

​@TheLinkedList this comment basically destroys this video... thank you... yes indeed there is no price on having a roof over your head versus trusting in a volatile system...

[@4711Express]

Correct, these were my thoughts too. Very popular but not possible anymore.

[@alg190]

Your plan may work for those that have discipline and knowledge. For the average person payoff asap is the best way.

[@bigal8976]

Had a friend that told me I was not smart for paying 50% extra on my mortgage & should be investing in market. My house went up 100% in 12 years and he lost $1mil in the market in the 2000 bubble. I also lost 50% in market. Unless you have a zero risk 6% return I don’t see this unless your buying real estate after crashes.

[@yoursafemoneypeople]

Thank you for your comment - there are all types of risk and the market is just one of them. If he lost million in 2000- 2002 he had several million in order to do so, and had recovered by 2008 the lost again and then 12 year run up. The whole time his house went up by the same amount as yours. The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost no obligations strategy session here calendly.com/jjsafemoney/appointment

[@bigal8976]

@@yoursafemoneypeople The problem is my friend also had multiple rental properties. Hispanics moved into the neighborhood and he also took major losses on these properties. The market is a big gamble. Who can wait years hoping it will come back. IF you can buy after big market sell offs the risk is minimized. I understand your logic, but also realize the risk. Every home I have ever owned I wish I hadn’t sold. The house that doubled is now 4x. A second house I own has gone from 380k to $1mil, Bottom half has been rented to same people for 7 years. Faces ocean on Puget sound. Plan to retire there. Property managers are terrible. They build no relationship with the tenants. I manage 1500 miles away. Wish I could find small apartment 8-12 unit that cash flowed after mortgage. Everything is so inflated none of the numbers work.

[@lancephinney5538]

You don't make any money off of people's paid homes, pay your house off, A bird in your hand is worth more than two birds in the bush

[@philv2529]

Making extra payments does not pay it off any sooner than if you had put those payments in a savings account or CD and then paid it off all at once in a lump sum once you saved enough. However you would have been getting interest on the account so you would have actually paid it off sooner. Also you would have had access to that reserve of cash in an emergency. Getting your equity out of a mortgage takes time and incurs a cost.

[@yoursafemoneypeople]

@@lancephinney5538 Actually not but the choice is always yours

[@faronray5765]

Debt free is the way to go. Nothing is for sure in the stock market. Just when you need to retire, you could take a huge hit. Better to pay off the house for peace of mind and for better sleep. My house is paid off and so thankful that I chose that path. Never been more happy with the peace of mind instead of looking at my stock account going up, then down, then up, then down big, then up, then down big again. I just have a self directed IRA (small balance) and don't worry anymore.

[@yoursafemoneypeople]

Thank you for your comment - Congratulations the next step is tax free and guaranteeing your life time income. Want to learn more start here calendly.com/jjsafemoney/appointment

[@loganmedia1142]

Definitely. You don't want to still be paying off your house later on, because you could lose it at any time.

[@gbretriever]

This is an important mathematical equation that we all should understand which is a bit counterintuitive. I know I don’t have the discipline of saving so it’s really theory versus application.

[@yoursafemoneypeople]

@@gbretriever In deed I can't fix that but you can. The choice is always yours.

[@brandonpetty3849]

Making extra principal payments does save you money, technically speaking, without question. The question isn't does it save you money, the question you are really asking is, "Does making extra principal payments save you MORE money than if you were to SUCCESSFULLY invest it?"

[@edvargas3105]

One of the things that you neglect to mention in 30 vs 15 year loans is that with a 15 year loan you save substantial amount of money in INTEREST. In many cases a home purchased with a 30 year loan, at the end, the cost of the home almost doubles the amount due to INTEREST.

[@jacobmarley2417]

He isnt interested in logic. He needs a pitcher , a glass , water and gullible viewers to sell the snake oil he is selling

[@mangoman9290]

But over 30 years your invested money has also compounded to the same extent. Put it this way, if you had a 30 year home loan at 3% interest and you could get a 30 year government bond paying 6%, would you buy the bond or pay off the home loan? The smart money buys the bond.

[@mdel310]

​@@mangoman9290yup not to mention inflation will also reduce the initial cost of the loan so the only scenario in which it doesn't make sense to invest anything above the minimum payment is if the interest rate is 7% or higher. Good old S&P can usually average that as a return but it starts getting dicey any higher.

[@kimatong1166]

You are not listening to his story.

[@danielschegh9695]

Conversely, if the mortgage is 6% and the bond, or other investments, are less than 6%, you are better off paying down the mortgage as quickly as possible. The point is that in the video here he ignored the negative ROI of the house payments. He only looked at the house payment ROI in terms of home equity value. He also ignored the many risks such as decreasing value or inability to make payments.

[@ssho7481]

You cannot put a price on peace of mind. Until you have paid off your mortgage on your main residence it belongs to the bank, and not you. That means trusting the bank, which is not something I am prepared to do. Stress exacts a high price on health. One serious illness or accident means dropping out of the workforce, and after that most people can find themselves homeless in a surprisingly short period of time. Once your house is paid off you can save to live your life without needing to worry. True freedom from debt slavery with no monkey on your back is wonderful. Mortgage rates are always higher than bank savings interest rates. If you pay off your mortgage in full early? You can take time out of the workforce without concern to homeschool, travel, care for elders, or just because you want to stave off burnout. You still have the option of borrowing % equity whenever it suits you to leverage any investments as it suits you. The point is that the choice is totally yours.

[@yoursafemoneypeople]

Great comment thank you - everything you said is true it is your choice. Only one thing they do not have to give you loan on your house and home equity lines can be shut down at anytime.

[@irsmun]

Nothing is every really this simple. If you pay off your house, you have purchased your asset for $500K instead of over 1 mill. If you then made your $2998 payment to an investment over the next 30 years you'd still have 3 million bucks. Now you have cake...and you can eat it; plus peace of mind.

[@yoursafemoneypeople]

Thank you for your comment. Be sure to re watch the video you will see there is a $2m difference in this example and frequently much higher margins in other examples as this one was very conservative. Be sure to do what makes you sleep best at night.

[@juanvaldez714]

It makes sense as long as you can get an investment vehicle that gives you the desired rate of return, but if the mortgage rate is at 6% you will need to invest in a stock, ETF, own a business etc.. those are subject to market volatility and are not FDIC insured, so you may end up losing all or a portion of your investment money. What is the recommendation, you give us to have that rate of return?

[@emmanouilpapadakis6956]

Good presentation. This advice only applies to people well off. Paying cash for your house makes no sense whatsoever on the assumption that you own cash equal to the value of the house stashed away in a bank that can be invested. For people just about making the monthly mortgage installment from their hard labour, the best way to financial freedom is to get rid of mortgage debt asap while adjusting their lifestyle accordingly depending on what other variables life throws...and there are pretty much always unaccounted variables for all.

[@yoursafemoneypeople]

How you pay off your house is up to you. If you are that close to paying off your house it likely already is. What I mean by this, is you likely have an account with enough money in it to pay off your house today, such as your CVLI - Cash Value Life Insurance. So my question for you is if this is so, why not pay it off today. Most people when presented with that question, refuse to pay off their house because they want access to their cash. Curious don't you think. As far as a freeze on HELOC watch what happens when the housing market adjust down, they will disappear overnight. You may have liquidity with Heloc currently but you are no in control. All this said there is still the issue of 0% rate of return on equity. In addition, the safety of that equity. Remember the choice is always yours. Feel free to reach out.

[@cmcordoYT]

I don't regret paying off my house when I was in my 40s. Due to some serious, genetic diseases, I lost my job, and I am now on disability. Not having a house or car payment helps me live within my Social Security, disability benefits, and my Medicare. I can even afford the Secondary Insurance to cover almost all my medical costs. No regrets at all. Years ago, I also put the same house in a trust so that when I die, the house goes directly to my children. Since they are still young enough, they can sell the house and split it three ways, and still invest it how they would like.

[@yoursafemoneypeople]

Sorry to hear about your disability. Congrats on paying off your house.

[@cmcordoYT]

@@yoursafemoneypeople Thank you.

[@nickgrnr]

Emotions move markets. Don't let the "math" hold you back from making a great decision either way.

[@yoursafemoneypeople]

@@nickgrnr Thank you for your comment - Congratulations you get it, feel free to reach out.

[@joethecomputerguy1]

Nothing felt better than paying off my mortgage at 42 and retiring at 52 regardless of what your trying to sell. And that's what matters. The bank can't take what they don't covet.

[@yoursafemoneypeople]

Congratulations on paying off your house. Have you taken the next step? Getting to tax free

[@joethecomputerguy1]

@@yoursafemoneypeople yep. Tax free or almost (less than $100/year) for 7 years now

[@TheFirstRealChewy]

You were going to be able to do that regardless. If you invested more earlier, you'd just finish paying off the house by 52 and likely end up with more money invested. That said, you'll never know until you run the math, but no one does after the fact because they are already happy with the outcome.

[@antpoo]

I’m Australia our mortgages are huge and rates high, Take me for example, was $850k and interest rate now 9%. Lucky I have paid it down to $480k now because my repayments have doubled to $5000 per month. No way most ppl can earn that kind of cashflow long term, to what invest in a volatile stock market? No thanks. If a recession comes as they say is coming, a lot of us here are done for.

[@yoursafemoneypeople]

@@antpoo the choice is always yours

[@lhale528]

The best advice I was given when I purchased my home 25 years ago was that my husband and I should purchase our home based off of one persons income. Two years ago I broke my leg and we are now surviving off of one income. Thank God we took the advice. Having only five years left on our home loan, we would’ve had a mortgage payment that we might not of been able to afford and possibly would have been facing foreclosure! Thanks you for this video!!! We plan to purchase again soon! Awesome information

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@kevinglennon7176]

You broke a leg two years ago and can’t work?

[@yoursafemoneypeople]

@@kevinglennon7176 There are many ways to answer your statement. The main answer is it depends on assets you have , Income needs, and can you do something that does require your leg.

[@jimmyc4962]

I paid my first house off after 7 years. Now on my 4th and probably last with 24k to go. I will retire and move in my first/smallest house while collecting rents on others. My wife, on the other hand, has 1 house before we were married and still paying mortgage after 24 years😂. I am happy with my 4 paid off houses next year while my wife is happy with her Appl stocks in 2004, and msft 2009, tsla 2013, nvda…..

[@jerryschippasr3147]

That’s exactly right, If …… we lived in a math problem.

[@stacy9497]

We do live in a math problem. It's called money printing, i.e. inflation.

[@yoursafemoneypeople]

@@stacy9497 Yes and life is a math problem inflation is a small part of it. there is so much more to learn here.

[@diamondkutz54]

Always pay off your house as soon as you can. You never know what the future brings and if you are indebted to an institution and you loose your job you will loose your house. The longer you pay interest on anything be it a house or a car the less return you will realize when you do sell.

[@yoursafemoneypeople]

Thank you for your comment - you missed the point. You should indeed pay off you house as soon as possible. So as long as you have the money in hand too pay off your house anytime you want you are always safe from problems.

[@diamondkutz54]

I don't think I missed the point. We just come from different schools of thought on economic policies. Paying interest on a loan is in nobodies favor other than the banks.Even with interest being deductible on your primary residence it still greatly limits what you could be banking and putting toward the purchase of another asset. @@yoursafemoneypeople

[@TheFirstRealChewy]

We've gone through medical issues, emergency repairs, job losses, family emergencies, leaves, etc. What I've found is that keeping the expenses low is great. However, its only great if you have the money to pay it. So having the money to pay whatever expenses come up matters more. Its the reason that you should have an emergency fund before focusing on paying off your debt. Having a larger emergency fund in the form of investments is even better because eventually your investments should grow to the point that it pays for your lifestyle. Also, don't forget that at some point you'll pay off the house. Its only a matter of time unless you keep refinancing or trading up.

[@SoloLLC]

It’s apparent you need to watch the video again. This mindset is what holds you back….Make your money work for you period.

[@diamondkutz54]

@@SoloLLC You know nothing about my financial situation and it will stay that way. The problem with you guys advising people to leverage any position be it a house or an equity portfolio could be the reason they lose everything in this impending economic downturn. All financial planning should be based on age, economic conditions and an astute understanding of how equity markets are rigged. Any real estate or any other major purchase .leveraging your assets could prove to be a grave error in judgement at this point in time.

[@barkhabhatia7546]

Loved it, very simple to follow and very informative thanks a lot for your time that you took !

[@yoursafemoneypeople]

Glad it was helpful! Thanks for watching

[@captoshuragnarok7444]

Interesting video. The math in the video is good for comparing the mortgage interest to invested compounded interest over 30 years but it didn't account for that paying a mortgage off early grants the monthly payment saved in that shorter timespan as an available investment. In the example if the house was paid off completely then the mortgage monthly payment of 2,998 would be available to reinvest every month for 30 years. The invested monthly payment plus the saved mortgage interest would add up to more than just investing the 500k.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours.

[@SliferRedRay]

He quite literally explained that in the video around the 15:00 mark…

[@captoshuragnarok7444]

@@SliferRedRay Almost. He explained investing the left over amount of a 15 year mortgage (4219.28) minus the 30 year mortgage (2997.75) which was the 1221.53 but not just the paid off early 30 mortgage amount of 2997.75. Consistent monthly investing, using calculators, sky rockets the returns more than just a large sum earning interest overtime. Starting from 0 and Investing just the extra 4219.28 from a paid off 15 year mortgage for 30 years out performs starting with 500k and investing 1200 per month for 30 years at the 30 year mark with 6% interest.

[@DiscoFang]

Actually it adds up to exactly the same. Investing $2,998 monthly for 30 years with interest of %6pa calculated monthly results in $3,011.536.10.

[@DiscoFang]

Ah I see what you mean. If you invest $500K 30 years but also subtract from that the interest you paid on the mortgage over the 30 years ($579,191) you're left with $2,432, 097. That's $600K less than investing the monthly mortgage payment for 30 years.

[@trumpshare]

You never actually own your house. Property taxes, HOA and insurance if you choose to buy it can strip you of your property at their will. Don't forget cost of utilities as no matter if own or rent will also be a factor.

[@irockhard2538]

Look up the price of rent 20 years ago. Look at the price of homes 20 years ago. I never met someone who had been in their home that long and that mortgage was higher than average rent today. Mt first apartment in 2001 was $525 a month. 700 Sq ft 1 bedroom 1 bath. Fast forward 2023 24:28 same unit $1500. $500 more than what my mortgage was. Always look ahead and not just the present. If you don't plan on living long yolo all your money away

[@yoursafemoneypeople]

Thank you - most people never look past today and this is the main problem they don' t plan to fail they fail to plan and if they only knew there is so much they would change. feel free to reach out calendly.com/jjsafemoney/appointment

[@Anonyme67]

None sense. You don’t pay same amount of properties taxes as senior and you don’t have to buy a house in a HOA area…

[@eileenwatt8283]

Those are expenses. A paid off house has equity. Your salary should be able to pay the house expenses.

[@eileenwatt8283]

​@@yoursafemoneypeople A paid off us frees up income to invest. See my story on comments.

[@mEAngurrrrl]

I’m 32 with a little over 430K, Once I pay off my mortgage, it jumps to 700K. I invest 27% of my pay. Can’t wait!

[@Rock..Paper.Scissors]

That’s legit

[@mEAngurrrrl]

Thank you! Actually have seen my nest egg increase nearly each year, and I feel confident and secure about my financial future knowing I’m well invested in global equities… ^_^

[@yoursafemoneypeople]

Thank you for your comment - If everything you thought to be true turned out not o be true when do you want to know? The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost no obligations strategy session here calendly.com/jjsafemoney/appointment

[@atrain132]

Anytime you can eliminate a monthly payment, and debt is a positive in any scenario. As far as the paying cash for the house scenario, if you paid cash you don't have a expensive monthly mortgage. So you could take what would normally be your mortgage and turn that into investment money while having a house that is paid off.

[@marinaspalate]

Exactly my thoughts. Take that 3-4k you’d be paying monthly and invest it, without paying hundreds of thousands in interest to the bank.

[@sheadoolittle]

@@marinaspalatehis math checks out if you already have the money for the house in full in the bank and you are risk neutral to that concept. Which, most people in the comments seem to be more risk adverse. Also most people do not have that much cash already on hand. Although, the concept does still work it requires a lot more risk tolerance and does not give any value to piece of mind and assumes you have no other assets or insurance to help in those nightmare scenarios. It gets much more compelling to me as you pay down the mortgage and build up more assets. Also if you have a mortgage with a low interest rate say 2-3 percent then investing any extra money also becomes more enticing. If you have a much higher interest rate than it’s significantly less compelling. As you are guaranteed a rate of return on any money paid extra on your mortgage of exactly your interest rate for the remaining term, which is a significant amount of money in the early years of a 30 year mortgage. I get 6.6 percent return locked in for 29 years right now. I don’t have that much faith in the market to trust I will beat that in the market regularly and repeatedly. Ask me again in a few years when I can refinance into a lower rate and have paid down the principal a bit more and don’t see a few thousand dollars go up in smoke to a banker each month. I just am a bit more risk adverse than that. I believe as you bank accounts amount increases your risk tolerance would increase as well and imagining a scenario like he gives I might do something similar. Although mortgage insurance also throws another wrench in to consider as well

[@danpiperpilot917]

I’ll give you the best reason, at least for most states, is that your primary home is protected from claims of creditors. In our litigious society, your savings and non retirement investments are ripe pickings for lawsuits.

[@drd4059]

The math model does not quantitatively include risk. The equity market risk is very different from real estate risk. There is an implicit assumption of a regular income. Its unlikely many wage employees will have the same income or job for 15 years, let alone 30 due to technological change. The assumed marginal tax rate is far too low. As a base case try 42% in the US and 56% in Canada. Every case is different. There is no one size fits all solution. I am a renter with zero real estate exposure, but run an actively managed tech company: that is I am using my scientific expertise to earn a higher rate of return than passive investments in real estate or stocks would provide. Its also noteworthy that ownership of real estate is a decisive factor for determining tax residency. It makes no sense to buy real estate at the cost of paying 56% income tax when the alternative in European tech havens is 10%-15%.

[@yoursafemoneypeople]

Thank you for your comment.

[@michaelwoods4495]

I've been a CPA for over fifty years and I know the math. But there is no math for the feeling of freedom that comes from owning all my property. If your emotions are different, then good for you.

[@yoursafemoneypeople]

It is always your choice in how you finance your house with or without a bank you finance it. Do what makes you sleep well at night

[@frankglover4560]

This is the best, most informative video that I have seen in some years. I am your new subscriber. Way to break it down

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out. calendly.com/jjsafemoney/appointment

[@UFPANZER2]

Wow very clear and concise explanation🎉😊, you got a subscriber sir! I will follow this advice!

[@DavidMNewbold]

Unfortunately, this only works if the cash assets retained are used to accumulate additional wealth. Having a huge mortgage and then using the cash assets on things that lose value is what so many people will do. Then, they have material things losing value AND along with a very leveraged house via mortgage debt. The math is correct but without discipline the cash assets will be squandered and that seems to happen more often than not. That said, where this is working for me today, is that I continue to pay the minimum on my 3.25% mortgage while putting large amounts of money into my retirement funds that have rates of returns better than 3.25%. Mathematically, I am making more money by not paying down the mortgage but instead investing that money into other assets with positive returns. It's as if I borrowed money at 3.25% to reinvest into assets that return on average >= 8%.

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it. You are right most people will never do it the right way, as most people don't plan to fail they fail to plan, and they are quick to blame everyone else for it. Have you started the next step, getting it into a tax free environment?

[@allanbriggs9007]

Don't you pay tax on investments in the US???

[@yoursafemoneypeople]

@@allanbriggs9007 depends on the investment

[@tchan131]

That’s absolutely the way to go. Paying off a mortgage that has a lower interest rate rather than investing with a higher return is a money losing strategy in exchange for a peace of mind. That said, it’s probably a good strategy for folks who are really concerned about stock market volatility. Discipline in investing is the key here.

[@georgedreher2322]

Purchased my last house, 2400 sq ft w/pool, back in 1997 and paid cash. As you all know, homes were much less expensive back then. It's a great house in an established nice neighborhood. For me, I preferred the glorious LESS STRESS path of NO Mortgage to worry about. Now looking at relocating to somewhere in the mountains of Northern GA, TN, or SC when housing prices in those areas crash back to reality. Different strokes for many folks.

[@yoursafemoneypeople]

Thank you for your comment it is different tor everyone one is a emotional decision the other is mathematical decision. When you understand the math it will frequently change your emotions. What if the housing market does not crash back as you propose or it take years to do it? you could likely do both and not wait.

[@sosaix3545]

Thing is, they're not coming down. Demand remains high vs. supply, as no one is letting their 2-4% mortgages go yet people are still buying houses, and when interest rates come down by 2Q24, as the Fed starts loosening the money supply again to orchestrate that "soft landing" we keep hearing about, mortgage interest rates will go down from the 8% rate today to around 6%, maybe 5%, and that will further stimulate housing demand in an already tight market.

[@Anonyme67]

@@sosaix3545yep! It will take 2 to 3 years for the price to come down. Once I pay off our current home, I get a construction loan for a new house and sell to current house to paid off the mortgage.

[@yoursafemoneypeople]

@@sosaix3545 The best time to buy a house is yes as long as you plan on holding for 8 years or longer. Interest rates are relative. If you believe you can time the market good luck many have been wrong on this approach many of times.

[@christianworthington7904]

The decline of the housing in those areas has already begun. Some are already reduced by 40% great plan! Similar to myself. Cheers!!

[@erictanty7227]

Excellent video. Im surprised so many people just dont get it. Shows the level of financial illiteracy in the world. I was aware of the general math you went through, but there were some interesting new tidbits in there too. Cheers

[@yoursafemoneypeople]

Thanks for your comment. It is amusing but the reality you have to be disciplined and have a plan on what to do with the money and pay it towards your future in the most tax advantaged way 🤙

[@1st-qt9ce]

3-4 years back had this same discussion with someone. They chose a 15 year refi and I chose a 30 year. That person lost their job this year. I choose a 30 year for a lower monthly mortgage payment. Which for me provided “peace” of mind. Knowing that I could make additional payments to pay off the loan in 15 years if I choose to. Instead of having an “oversized” monthly mortgage payment obligation.

[@yoursafemoneypeople]

Good job - now instead of making the extra principal payment to the bank - make it to the bank you. You will pay your house much faster while maintaining safety, liquidity, and rate of return.

[@Anonyme67]

Good strategy. Mine is 30 years but will paid it off in 2024.

[@nysteelhorse]

​@@yoursafemoneypeopleSo what happens if your investments don't consistently earn at a higher percentage interest rate than your mortgage? A fixed rate you know to the end. You have an amortization schedule. Investments are subject to the wind of the markets. Professional investors would kill for an even, consistent and reliable 6% annual return!

[@terrybusch5088]

Bingo you win, isn't it strange how many people can't see this.

[@yoursafemoneypeople]

@@terrybusch5088 I was one of them once so I get it. But is sad how they attack rather then consider. feel free to reach out

[@vinhhuynh1774]

I agree the math said 'No"' but that only apply to people that are can manage $; and understand the balance that works for them. Just because you can manage $; it doesn't mean your spouse, kids, etc have the same perspective; and having extra $ on the side, tell your spouse that he/she can't spent $ with a big investment account; it doesn't work.

[@HowHingPau]

I agree. This concept sounds good at first impression, but I kept having a feeling in the back of my mind that this assumes one has a really good income or already has a large chunk of cash on hand to afford to be "thinking out of the box" like this.

[@pakviroti3616]

@@HowHingPau Figures don't lie, but liars figure. He omits a few real considerations. Even if you have a low interest rate, you are STILL paying interest. And for some people retirement income can fluctuate. Having a paid for place to live is better than carrying debt. Just have a look at an amortization schedule sometime to understand the true cost of a mortgage.

[@yoursafemoneypeople]

@@pakviroti3616 Thank you for your comment - I find it interesting that people will go so far as to call someone a liar but will not post the math refutes the situation. The fact is you can't because the math is correct. You may want to consider doing the same thing you have always done, after all you know what Einstein said

[@TSidez]

Manage money? You can get a financial planner or even on a simple basis use a robo advisor to manage and tax harvest. You can achieve a return near or above your mortgage interest rate by simply investing in index funds. Set and forget.

[@yoursafemoneypeople]

@@TSidez And much more if you want to learn how this applies to your situation reach out and leave your check book at home calendly.com/jjsafemoney/appointment

[@carlosmanuelgonzalez310]

the real problem is that people are not sure how income is going to be in the following years. fear of not being able to secure a roof

[@PaulaLouvaniHernandez]

First video I see from you thank you for you clear explanation. It makes more sense now. seeing the steps and running on the maths i love it

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@scottwilly86]

From my personal experience you want to get the most money in to investments as early as you can to give compounding a chance to work it's magic. Opportunity cost is very real. But I also believe people have different personalities and just need that peace of mind.

[@yoursafemoneypeople]

Everybody is a individual and many will choose to never understand this, and that is okay. But it is best to understand it so you can make educated decisions. How you choose to pay for your house is you business and I would never fault you for it. But after understanding the math many people change their approach. By the way I was one of those people making bi-monthly payments on a 15 year loan and throwing extra principal payments at it regularly. Then I finally came to grips with what I was being taught and the rest is history.

[@whitedoor987]

Your math doesn't figure in job losses, increases in insurance and taxes. The cost of everything sky rocketing. People are going into foreclosure and getting repoed in record numbers. Only a small percentage of people 1 million in assets. A smart person pays off the house asap and ignores your math. Debt in today's world can quickly bankrupt a person should something change quickly.

[@yoursafemoneypeople]

Thank you for your comment - regardless of the perils it still cost money to live indoors you finance your house one way or another. Either you finance it with your cash, or you use OPM the banks money. When you put all of your cash in the house you take on all of the risk and are now losing money on your money. Hard to believe I know, but do the math.

[@arnaldogloria1749]

Wow! Idea out of the box. Thank you Sir and have to watch again to chew and possibly apply to our current situation. God Bless!

[@yoursafemoneypeople]

Thank you for your comment. I will be happy to explain this to you and how it applies to yourself Reach out calendly.com/jjsafemoney/appointment

[@suncitybooksgeraldton335]

So what happens early on if the price of housing falls and the return on investments fall you have no house to live in and no investment and very possibly no job. I payed off my house at 25 and had children at 28 and 31 with no house payments on the house we lived in and tenants paying for our 2 rentals at 31 now at 61, I have another 4 rentals and no need to work for the last 6 years. I bought at high interest rates 18% and low house prices in the 80s 25% gross return on my rentals later interest rates dropped and house prices went up buy I had them 1/2 paid for and used them as collateral to buy more. And yes I slept well at night In my house that has been payed for the last 36 years.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours.

[@joseCalderon1976]

I look at things differently. If I have debt, then I have RISK. I want to get rid of the RISK (my mortgage) as soon as I can. Now that's just me and MY personal situation. My base pay is $72k per year, I'm 47 married with two kids. We have a modest home that we got a mortgage for in 2012. We got $100k left at 3.5%. And I guess I'll contradict myself, because I'm only putting an extra $120 per month towards my mortgage ($1200 per month total). I pay $645 twice per month to save on interest. With those two things, I'll be done in about 10 years. The extra money I have, I'm investing it into my retire accounts (about 12% of my yearly salary). And yes I need to increase that. So yea, don't want all my eggs to b in one basket (my home equity). So it depends on YOUR personal situation and what you are comfortable with. My life insurance would cover my house if there worse were to happen to me.

[@yoursafemoneypeople]

would it surprise you to know that if you side funded that money you would have enough to pay off your house faster and if something happened you would access to those as opposed to being wrapped up in your house. if you want to learn how this applies to your situation reach out and leave your check book at home calendly.com/jjsafemoney/appointment

[@joseCalderon1976]

@@yoursafemoneypeople Yeah, like I said, I'm only putting like an extra $120 per month towards my house and I'm investing and saving the rest 👍

[@yoursafemoneypeople]

@@joseCalderon1976 Good job but the money that going in the house is losing everyday.

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@kingsizediamondOG]

The mortgage is balanced on the books using liabilities. If you have a house you owe 500k on, its not an asset. Its more accurately a liability because at 6.5% interest rate, a 500k loan will require you to pay 32.5k a year to the bank, not even off your principal.

[@yoursafemoneypeople]

Thank you for your comments - check your balance sheet.

[@jvapr27]

You need to take into account the liabilities. You need to use debt the right way. 1 million dollars in assets minus 500k in liabilities will end up with 500k in net worth. In the end your net worth is the same. 500k, not 1 million. If you have the house at 500k and the liability, and you have 500k in the bank, plus you decide to invest the 500k and make more money than your interest rate, then yes you can make more money off your money. But if you do not invest it to make more money than your mortgage interest rate, then you will lose money. The house equity will adjust with inflation but your cash in the bank will not.

[@yoursafemoneypeople]

@@jvapr27 If everything you thought to be true turned out not to be true when do you want to know? The bottom line is you finance everything you buy, either you use you money or the banks money but you financed it either way, and either way there is a cost. The choice is always yours.

[@Forgotten1]

This just literally changed my life! Thanks! Subbed!

[@bugatti314159]

I'm currently making minimum payments on my 30 year refi I locked in at 2.3%. Dropped my payments several hundred a month. The difference goes straight into investments in my Roth where I make 2 to 3 times more. And that money is completely tax free. Definitely worth doing.

[@kimatong1166]

I would have done the same.

[@Brandon-ky9qu]

You pay mostly interest the first 7 years they love to refinance and start that clock over again. If you've paid most of the interest they love to restart and collect more

[@tomrobles1998]

Your money is trapped in prison until your ready to retire you have no control over other than contributing more I would never do that I would and do invest that money in more real estate and make more money with it and pay less tax as well but you sound conservative and if that’s good for you keep it up you’ll pay the tax when you start your use it

[@bugatti314159]

@@tomrobles1998 Do you know what a Roth IRA is? ZERO taxes will be paid on this money. Ever. And I can withdraw funds (within the rules) or change investments at any time. If money is tied up in your house, the only way to use it is to take out a loan, which defeats the purpose of paying off your mortgage in the first place, or sell your house.

[@yoursafemoneypeople]

@@tomrobles1998 Thank you for your comment - Congratulations you get it, feel free to reach out.

[@pootieputin2771]

Paying off my house in 7 years was the best financial move I ever made.

[@frankchris07]

You did the right thing. 500,000.00 house will cost 197,000.00 in interest for 30 years. You save money and have piece of mind take that money you saved and invest. This guy makes no sense

[@yoursafemoneypeople]

@@frankchris07 Thank you for your comment the choice is always yours.

[@SeboltLawnLandscape]

I’ve always wondered why folks don’t take the money they would pay towards paying off their home and invest it into dividend aristocrat stocks, or dividend ETF’s. A solid investment in a dividend paying stock or fund could really give you a steady stream of cash for the rest of your life. Use that money to pay the mortgage and you essentially have no risk. I understand the peace of mind thing, but there is definitely other options. Id rather not tie all my money up in paying off a home. The value grows whether it’s paid off or not. I do not hold any consumer debt or debt on depreciating assets, but homes are a different story.

[@yoursafemoneypeople]

Thank you for your comment. What people struggle with is the way they have been taught to pay their mortgage, either directly or indirectly. The truth lies in the math . But some people will always be better off paying off their house as they will never take the time to understand the math and will simply follow the old way of thinking blindly not knowing really knowing why. And that is okay.

[@daryljackson3704]

you are assuming your "investments" will always be there. You cannot guess what they will be in 6 months.......":one in the hand is worth 2 in the bush" It appears you have alot of bushs in your life, no thanks.

[@yoursafemoneypeople]

@@daryljackson3704 Thank you for your comment - You actually can if you design them correctly risk is not always a necessity.

[@travismartinson1813]

I would have a lot more peace of mind with enough dividends coming in to pay my house payment every month. Especially during the time that I was working to pay the house off early knowing that if something happened and I couldn't make the payment I would lose my house. Dividend payments compound and appreciate but your payment stays the same on your house. He didn't even factor the dividends compounding and appreciating into the math. Through some covered calls into the mix and your really coming out ahead.

[@TheFirstRealChewy]

​@@daryljackson3704 I also don't know if money invested for retirement will be there, but I'm still going to invest.

[@dbmajornz]

Hi James, does this apply to other countries like New Zealand as well? I know that in the US, there are tax advantaged vehicles that can be used. Are you factoring these types of vehicles into your calculations or could one hypothetically do this by investing in NZ and AU ETF’s? Hypothetically speaking, would one be better off refinancing one’s house to then invest that capital even if the interest rate is lower? Surely the choice of investment factors into this equation at some point? I have so many more questions, but interestingly enough, my wife and I sat down yesterday evening and came to this same conclusion, so it is nice to have support for that answer. Would you be interested in talking to someone from little old NZ? Appreciate your time. Cheers!

[@donut132]

so im coming into about $280,000 in inheritance, and owe 150,000 on my house. you would suggest i just invest the whole thing? Dave ramsay says pay off debt then invest

[@yoursafemoneypeople]

Think about this for a second - You mortgage rate is likely lower the 4% you are paying on a declining balance. You can get 5% fixed rate today on a increasing balance. You always have the money to pay off your house anytime you want. Therefore you really are not in debt. Once you pay off that house That $150,000 is no longer safe, no longer liquid, and now you are losing money on it in two fronts, inflation and opportunity cost. Dave Ramsey speaks to broke people. The choice is yours - I will be happy to explain this to you and how it applies to yourself Reach out calendly.com/jjsafemoney/appointment

[@daeseanboyd]

Listen to Dave Ramsey... pay that shit off and get it over with

[@yoursafemoneypeople]

@@daeseanboyd There are three types of people spenders, savers, and wealth creators. If you are the first two listen to Dave.

[@stuartmalin661]

Math is impartial and unemotional. Thank you for the excellent presentation. Your introduction of planning for unexpected situations (loss of job, natural disasters) is atypically addressed and yet crucial to consider.

[@yoursafemoneypeople]

Thank you

[@jdsheleg8332]

Yes, but math is just a concept, not real life. I call BS in anyone, who given the chance, will not like to have a clear title with zero debt.

[@stuartmalin661]

@@jdsheleg8332 You have missed the point entirely. Clear title with zero debt does not provide security - your house can be taken for many reasons. Plentiful liquid assets and the freedom to respond to emergencies are more important.

[@yoursafemoneypeople]

@@jdsheleg8332 Thank you for your comment - you may have missed the point if you have $500k and you owe $500k you are debt free. Either either way the title to your house is in your name.

[@irockhard2538]

​@@stuartmalin661when your home paid off there is alot more money to save. Emergencies are not the same as when there is a mortgage. Emergency fund is in place without a problem.

[@jaybarr8098]

No regrets paying off my house.

[@yoursafemoneypeople]

Thank you for your comment. That's great! very happy for you - consider this, what did you do with the house payment?

[@pcc2662]

Hi, I’m brand new to your channel and this is the first video I’ve watched. Everything you said makes sense. What are your thoughts on paying off a rental property? Same math? If a rental is paid off you have greater cash flow. I’d like to see a video where you do this analysis and maybe you already have. Or, a snowball effect of paying off one rental, and then using the extra cash flow to pay off another rental? The idea being having greater cash flow in the future when retired. What about refinancing one rental to pay off another rental or buy another rental? Is the answer it’s always better to have a mortgage and invest any surplus money in an index fund? Thanks.

[@yoursafemoneypeople]

I will be happy to explain this to you and how it applies to your self Reach out calendly.com/jjsafemoney/appointment

[@loganmedia1142]

Our local banks definitely won't make any effort to keep someone in a house that has a large amount still owing. They'll take it, sell it for what they can get, then come after everything else you have. Savings, cars, appliances, clothes and so on. If that isn't enough they'll just take your future earnings. Our house is insured. It's a requirement. However if it wasn't the person still owing a lot on the house wouldn't be better off, because the bank will come take your cash to recover what you owe them for the house that is now gone.

[@yoursafemoneypeople]

I’ve seen it happen on both sides. I’m just pointing out the math of this situation

[@Utsusemi]

so what do we invest in

[@mEAngurrrrl]

OH, best believe there are lucrative opportunities in these markets

[@yoursafemoneypeople]

Thank you for your comment - The answer is it depends, first you need a overall plan. There is more to life then securities. Feel free to reach out - calendly.com/jjsafemoney/appointment

[@yoursafemoneypeople]

@@mEAngurrrrl There is more to life then securities.

[@yoursafemoneypeople]

@@philcrowley007 There is more to life then securities.

[@mjs28s]

Of all the people that I have had this same discussion with, you are about the only one that ever agreed with my thinking. You are also the ONLY one that used some of the same added-risks of tying money up on a home (job loss, opportunity costs, etc). Like wow. I no longer stand alone!

[@yoursafemoneypeople]

Thank you for your comments - I have found that most people live in a box when it comes to financial planning, and they keep asking the the people that are in the same box with them, how to get out. Yet the directions are on the outside. This frequently includes CPA's Attorneys, doctors and financial planners. Most people take the least route of resistance it is just easier then doing the math and changing your paradigm. Feel free to reach out at anytime calendly.com/jjsafemoney/appointment

[@azteca6695]

I was single at the time. I managed to save 3 months of emergency funds. 2 yrs after I moved into my house. I was diagnosed with cancer. The following year as I was going back to the hospital and doctors. To check for any remaining cancer cells. New management came in, I lost my job. Fortunately I had that money saved up. I was cleared from Doctors and was able to find another job 2 months later. I cannot stress enough about having an emergency funds. And I did get a 30 yr mortgage. Made extra payments as I could. Stopped making extra payments, when I was going through this. The mortgage was paid off in 19yrs. I was told I'm losing out in investing. But paying off the mortgage gives me a peace of mind, in case something else happens.

[@yoursafemoneypeople]

Congratulations and thank you for your comment - The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost no obligations strategy session here calendly.com/jjsafemoney/appointment

[@Vernonchan]

The jug-water-glass analogy is AMAZING!

[@livingdangerously3226]

On a banks balance sheet, loans are assets and deposits are liabilities. Banks want to keep you in debt and will always prefer you take the longest loan with the least amount of risk to them. If your claim that a bank would prefer you to take a 15 yr loan out instead of a 30 yr is true, that means they would be striving for lower assets and in turn a lower net worth.

[@yoursafemoneypeople]

Yes but if that was true then why are there not 50 60 70 years loans? Thank you for your comment

[@AudioLomtik]

@@yoursafemoneypeople Because the federal government won't allow greater than 40. Why? Because they know it is already highway robbery to do more than 30, and they know that the low payments will lure the unwilling into buying more than they can afford, leading to another mortgage crisis (which hurts the US economy).

[@yoursafemoneypeople]

Thank you for comment - this one made me chuckle, how nice would it be to have a 100 year mortgage at 3- 5% the payment would be stupid low and certainly less then you could rent for. Mortgage crisis was 100% the doing of the banks loaning to anyone who could fog a mirror and borrowing to consume.

[@AudioLomtik]

@@yoursafemoneypeople Just imagine how much fun the PMI companies could have with 100 year mortgages. The sleight of hand banks and finance organizations never ceases to amaze.

[@yoursafemoneypeople]

PMI only applies to low loan to value accounts and can be removed over time in most cases. but you are right.

[@proudlycanadian3581]

Paid off my home years ago, best thing I ever did was to focus early on my mortgage.

[@yoursafemoneypeople]

Congratulations the choice is always yours

[@YaCG-rg7xx]

Sir, thank you so much for this explanation. Never before I have seen this matter explained so clearly. Most of the time we don't take into account that we have a limited life time. Also the cost of opportunity is frequently excluded from these analysis but you ( or the math and the life???) are 100% correct. Enjoy peace of mind with 250 thousands, to say a number, less in your pocket is a weird sentiment.

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@ResponseDigitalMedia]

Very interesting… Wish I saw this video 20 years ago. So please do a video for those of us that have already paid off our houses - and how to leverage the equity for investments or rental properties.

[@yoursafemoneypeople]

Thank you feel free to reach out - calendly.com/jjsafemoney/appointment

[@marcopolodarts]

That's a nice way to lose your house. My opinion on leveraging a paid off house in order to invest in rentals or otherwise investing would be to downsize said property. Sell it for a moderate home and buy a rental property cash. You'll also have cash for investing in the market.

[@yoursafemoneypeople]

@@marcopolodarts Thank you for your comment - The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost no obligations strategy session here calendly.com/jjsafemoney/appointment

[@oldpartsnewstarts9502]

Wow, thanks for the perspective. We were considering paying off a rental property at the first of the year imagining the stress-free debt-free aspect would be beneficial but after listening to this, I’m not sure? Thank you. Great channel currently subscribed.

[@elishariedlinger559]

Search for Dave Ramsey. He will shed more light on this. You definitely want to pay off your house.

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@ToddBeck]

Your math (and philosophy) works except for two reasons. (1) People won't have the discipline to invest the difference. (2) People get emotional about mortgage debt instead of treating it like any other leverage. So only disciplined, rational investors will benefit from your strategy. Keep offering them good, relevant advice.

[@yoursafemoneypeople]

Yes this true most people find it a challenge to treat business as such. I have found I can only lead the horse to the water. Thank you for your comments

[@supastyles1]

Ok using the scenario you were using. You didn't mention that the $1m mortgage amount would subtract in the end from the investment leaving $2m net. Also using the same numbers, pay off the house day 1 500k. Then take the $3k a month in mortgage payments you were making, invest that in a 6% interest investment and you get $3m without having any deductions! This option yields 3m and has little personal risk Your option yields 2m and you could lose the house at any time.

[@michaelkeaton32]

I liked hearing your argument. It's good to hear other perspectives. I think, if there was a perfect answer this wouldn't be a contentious subject. It comes down to many variables.

[@yoursafemoneypeople]

Thank you for your comment - The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost no obligations strategy session here calendly.com/jjsafemoney/appointment

[@markgotschall2914]

It's never a bad idea to pay off any debt.

[@yoursafemoneypeople]

Thank you for your comment - You are correct it is never bad idea to pay off BAD debt, but when you pay off your house you are simply take on a new debt, financing your self with your cash. Now losing money daily based on opportunity cost, and inflation.

[@ericheatmiser2099]

@@yoursafemoneypeople But we lived our lives stress free never having to worry about a layoff or a bubble pop like we will eventually see in ALL asset classes. Being debt free allows me to save cash for when the assets depreciate and I can buy them up again with NO WORRY due to leverage. Working from home takes away any desire to retire as my home has better amenities than a 5 star resort. I work and enjoy life at the same time. That's WEALTH not some figure on a sheet of paper or computer screen. The coffin doesn't come equipped with pockets. My home has been paid off for over 20 years. What a great life it has been. My health is good because I didn't destroy my body with financial anxiety.

[@gbinman]

I bought my house cash, 18 years ago. I also have been retired and debt free for that length of time. Absolutely no regrets at all and would do the same again. I trade the markets, one can look at the S&P and truthfully say it keeps going up but averages over time can hide the rollercoaster moves that happen in shorter timeframes. I was surprised that you didn't mention one advantage of debt. As the dollar continues to lose value, one repays debt with dollars that are worth less than when they were borrowed.

[@yoursafemoneypeople]

Thank you for comment - Some people complained how long the video was. I could talk for another 3 hours just on this subject and not get it all out. Besides for some, this is enough of a paradigm shift without all the facts. But you are correct, you are paying tomorrows debt with todays dollars which over time becomes less and less and you are paying on a declining balance and compounding on a increasing balance. There fore you do not need a equal rate of return to come out a head over time. Congrats on your position in life. Never forget good better best, never let it rest until good gets better and better gets best. If you ever want to learn how to make it better reach out calendly.com/jjsafemoney/appointment

[@oliverpolden]

Agree, and not only that, you will probably be earning more.

[@gbinman]

Even as a retiree, that is true. I do have a great defined benefit pension. It is capped to 3% per year with a COLA bank. I receive far more than when I retired 19 years ago. About 50% more. Of course in actual buying power that is less.

[@MM-nj2hi]

Good video. At the ends its personal choice, but it is a piece of mind to be death grip free. That said, assuming you do invest and get a better return vs after mortgage interest then it's a no brainer. You got a new sub😊

[@yoursafemoneypeople]

Thank you for your comment - Congratulations you get it, feel free to reach out.

[@SaRa-ms5zy]

Thought provoking, thanks for this video!

[@yoursafemoneypeople]

Thank you for watching! 🤙 but the question is, what’s your plan with the extra money? Happy to chat any time

[@ew1usnr]

I paid my 7% 30-year mortgage off in seven years (in 2005) and avoided a vast amount of interest payments. My house is now valued at almost four times what I paid for it.

[@yoursafemoneypeople]

Thank you for your comment - congratulations you personal financed your house. The cost of that over 30 years is approximately $500,000 for every $100,000 in the wall of your house. So maybe you paid a little bit more then you thought. The choice is always yours

[@tbros0331liffy]

Can you get that money out of your house next month if you needed too?

[@yoursafemoneypeople]

@@tbros0331liffy its no in the house and yes I can access it anytime.

[@tbros0331liffy]

@@yoursafemoneypeople how.old.do.you.have to be tonstart an annuity?

[@tbros0331liffy]

He stating that you may have paid off your house, worth say 400K. So now it's worth 625K. You can not access that equity. If you do, it's a process in which you have to show them that you can pay back the money you already paid for the house. In an annuity, you have access to your mkney within 1-5 days. CASH. So you can let your money sit in annuity and generate more interest than your house costs, which i. Turn, makes you able to pay off your jome in one payment over time instead of explaining to a bank why you need "your" equity/money out "your" home

[@Boli4161]

Sir, I wish young people could understand the importance of your teachings. I made that mistake once and paid cash for a house, what a waste of money and opportunities! Now I know better. People talk about peace of mind... I have peace of mind when my money is making ME money and not the banks. Great job, sir.

[@yoursafemoneypeople]

Thank you for your comment - It is nice to see when people actually get this. The sad part is it will take a generation to change the thinking as so many are dug in so tight to their believes. Very unfortunate for them. Feel free to reach out anytime and I will show you how to make your whole situation even better.

[@meljordan220]

Don't the banks make a lot of money on your mortgage interest? So the bank does make money. It's much easier to lose a house if you have a mortgage then if you don't. My husband lost his job when we lived in Texas and we lost our home because we had a mortgage. We had to sell a short sell and right off the rest. So having a mortgage is not secure at all. Maybe if it's not your only home? But if it's the only home that you have to live in I think it's dangerous to keep a mortgage any longer than you have to.

[@davebruno6819]

Warren Buffet talks about this, too. Specifically how banks make money off your money. Buffet & Charlie Munger, RIP, are great, common sense investors and worth watching, IMO.

[@yoursafemoneypeople]

@@meljordan220 Thank you for your comment - The point of this video is to get people to understand that equity has 0% rate of return. Once you understand that, you can make a educated decision as to whether you should accelerate the paying off of your mortgage. Once you do the math on that, and understand that interest rates are relative, you will likely change the way you do it. The choice is always yours. The right or wrong way to do it, is up to you. It really is mathematical or emotional choice. In addition, everyone's situation is different. Regardless of how you choose to do it you should always have a plan. if you want to know how it applies to your situation set up a no cost

[@meljordan220]

@@yoursafemoneypeople but equity does grow even if it's not by a percentage. So if you're only talking percentage then you are correct however if you look at increasing value you are incorrect. That is the only point I'm trying to make. And the fact that you will get a higher percentage by investing cash then you would if you have a mortgage and have to spend instead. If a mortgage is $1,300 and about half of that or more goes to interest wouldn't it be better to pay the mortgage off early and invest at $1,300 so that you get a positive rate of return and set up a negative one having a mortgage? That's the part I don't see being addressed. As long as you have a mortgage, you have a negative rate of return by paying interest. That's the only reason I'm saying what I'm saying. With a mortgage you have a negative rate of return plus you cannot invest the mortgage payment in somewhere else to gain a positive interest.

[@johncalvin9703]

Debt free, Stress free, there’s more to life than freakin money.

[@josefalawson3049]

I' m a small-time real estate investor. One of my rentals is almost paid. I plan to withdraw the equity and renovate the other house. After renovation, the rent will double. Is my plan a good plan? Thank you for your expert advice.

[@smileyb1477]

One advantage of paying off mortgage is being able to cancel homeowners insurance. Sure the risk is there, but that is up to you to decide. Putting aside those thousands per year you save on insurance can mitigate a lot of risk, besides as a bonus, being able to use those funds for what you want. Go ahead, add up your homeowner insurance premiums. They are ramping up in a lot of places due to inflation.

[@yoursafemoneypeople]

Thank you for your comment. The number for home owners insurance pales in comparison to the arbitrage even if you paid $150k for insurance that is a far cry from $2m. If you choose to go this route be sure to save the premiums you would have paid in a side account, just is case something does happen. After all that is why they call it insurance. Incidentally I do this with my cars. I only carry minimum coverage .

[@BrianK-zz4fk]

good point there are alot more factors to include.

[@_m_K_.]

Paying off mortgage to avoid homeowners insurance is ridiculous, UNLESS you have a very small mortgage. If your mortgage is small only 500-800 a month, and homeowners insurance is high maybe 2/3000+ because you live in flood area or something... then yes. For me, my home owners insurance is $1200 a year, which is 40% of the monthly mortgage. To pay off your insurance early and it make financial sense, means it would have to be an outrageously high insurance in a hurricane zone, and monthly payment very low.

[@yoursafemoneypeople]

@@_m_K_. Insurance is expensive especially when you need it and don't have it. Its priceless when you need and you have it.

[@yetivanmarshall1473]

My friends have been refinancing their entire lives. We are now in our 60's, they still have mortgages. Mine's been paid off since 2004 allowing my wife and I to save a bunch of money and can retire very comfortable any day we decide to. We had 2 young children at the time and didn't want to upend their lives if we lost our jobs.

[@yoursafemoneypeople]

Thank you for your comment the choice is always yours

[@chrisforker7487]

The beauty of numbers is that you can make them tell you anything you want! Just look at companies like Enron!

[@etldev6981]

If mortgage is 450k with 6% fixed interest for 30 years, is it better to pay off earlier than 30 years. If mortgage interest rate is 3-4% then it is good debt and keep it for longer but of it is 6% then we end up paying lots of interest to mortgage in long run right. Please suggest

[@yoursafemoneypeople]

The answer is it depends. I will be happy to explain this to you and how it applies to yourself Reach out calendly.com/jjsafemoney/appointment

[@waynemiller6070]

I've been well over a million in debt and I've been debt free. I'll take debt free. I sleep a whole lot better and I have no financial worries. It's amazing how fast your cash stacks up when you're not servicing debts. My advice would be, don't take advice from this guy.

[@rnarzu]

Sounds like you're right -😅

[@yoursafemoneypeople]

I Don't recall giving any advise. I'm simply showing the numbers what you do is your decision. But be clear you finance everything you buy - you either use your money to finance it or someone else's so you finance everything you buy. But thank you for your response.

[@waynemiller6070]

fair enough @@yoursafemoneypeople

[@user-gt7fj3jh4y]

It seems like the above statement was made by some one who made a bad million dollar investment and then is still chicken little quoting !!! lol. you cant fix stupid!@@yoursafemoneypeople

[@yoursafemoneypeople]

@@user-gt7fj3jh4y I have learned not call it stupid. Education is the key. Unfortunately there is not a lot of good education around when it comes to this, most education is linguistic marketing. Unfortunate but true. Remember when you are green you grow, when you are ripe you rot. Never rule out the alternative, as many times it is the only choice despite our believes.

[@Boris5Z]

I want to add my life example. In 2011, i divorced and we had a fully mortgaged house. Wife did not want it because an 800 dollar payment seemed too high. So i kept it, and it quadrupled in value by now. If the house was payed off back then, she would probably insisted on selling it and splitting the equity

[@yoursafemoneypeople]

Great comment - I experienced the same thing, and this is just one example of why it is better to have a mortgage.

[@Boris5Z]

@@yoursafemoneypeople and unlike some catastrophic events, divorce happens to about half of marriages. So, if you are a single or main income earner think twice about paying off the house which is likely to stay with your better half if things go sour.

[@yoursafemoneypeople]

@@Boris5Z Unfortunate but true - yet this is just one of many reasons why you should hang on to your cash and let the bank carry the liability.

[@boneyn3661]

However, you forgot to mention one thing: If the house was paid off, you'd have potentially put $2-300,000 into... if you had invested that same amount, she would have been entitled to half of it (adding all your assets together and dividing in half).

[@boneyn3661]

@@yoursafemoneypeople So your ex was entitled to half of your savings then, correct?

[@davidgrose6321]

I'm in Australia. I've got a redraw facility on my mortgage. I've paid as much as I can off my house to drop the repayments. I can still use the money I've put in my house but at the same time my repayments are almost nothing. Do re draw facilities exist as an option in the US ?

[@FrankBurgos]

I believe thats a reverse mortgage in the US but not 100% sure.

[@yoursafemoneypeople]

It is called a home equity line of credit which you have to qualify for, and always higher interest and usually variable

[@user-qj7yn3rt6d]

Your video hits close to home for me. I have a house worth $500,000. I currently have a $190,000 mortgage with 3.25% I have $250,000 in a CD at 5.50% I also have about $20,000 in emergency money in my bank savings. I sleep just fine at night set up this way but I have thought about paying off the house and just invest like crazy too. Thanks for the video, food for thought for sure.

[@yoursafemoneypeople]

You are welcome! Thanks for watching. I’d be happy to chat anytime. There are some other strategies you probably haven’t considered! calendly.com/jjsafemoney/appointment