Will Paying Off Your House Mean Higher Taxes? - Dave Ramsey Rant

💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...

[@TheRamseyShow]

Get life-changing financial advice anytime, anywhere. Subscribe today: kzbin.info

[@scottweatherman3266]

If my wife (ex) who attended your seminar about 15-16 wears ago, followed your plan, she would be wealthy by now. However, she gave me the tapes to listen to. So, I listened, then she did everything except follow the program. Guess what happened. Call, then I will tell you.

[@kristophersean2747]

You probably dont care but does someone know a tool to log back into an Instagram account?? I was stupid forgot the account password. I appreciate any tips you can offer me

[@immanuelforest2317]

@Kristopher Sean Instablaster =)

[@kristophersean2747]

@Immanuel Forest thanks for your reply. I got to the site through google and Im trying it out now. Looks like it's gonna take quite some time so I will reply here later when my account password hopefully is recovered.

[@kristophersean2747]

@Immanuel Forest it did the trick and I now got access to my account again. I am so happy:D Thanks so much, you really help me out !

[@greenearthblueskies8556]

Paid my house off, loss my job...I can do side work to pay the taxes....no place like home

[@channell11]

Having a paid-off home buys you a lot of security and options.

[@Evil-Rod-Farva]

This. The most valuable thing in the world are options. Paying off a home gives you the power of “no.”

[@gabrielrojas8718]

Pay off my house... quit my job because I realize I will never became rich if I keep doing the same thing (also there was a trash supervisor there) now I taking the risk to start my own business so far so good 👍. It's true no having a mortgage payment is not like having no fear to experiment new things!

[@johnb1121]

😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍

[@unlimitedpower4101]

And the home insurance (and also if you have HOA)

[@HunsValley]

Paid mine off yesterday!!! Still doesn't seem real.

[@310shadow310]

Congrats!

[@theMightyWhytey]

That's great!

[@CR-qu5jc]

Congrats!🎊

[@Joze_Mendoza]

Congratulations!!🔥🔥

[@omar9268]

congratsssss

[@Devinfrbs]

This question is just a rephrasing of the "I can't take a raise because I'll be in a higher tax bracket" idiocy.

[@elmateo77]

Most of that comes from people not knowing that we use a marginal tax system. If it actually worked the way they think it does, their logic would make sense.

[@mikederucki]

Devin Forbes so true - heard my aunt say this the other day about why “should she take overtime pay if it all goes to taxes?” 🤦‍♂️.

[@alexc5369]

But for the countries that do not use the marginal tax bracket system, sometimes one who earns more than another would infact receive less take home pay.

[@Devinfrbs]

@@alexc5369 I mean... yeah. But in Canada and the USA, that's not an issue.

[@Fusion008a]

Or don't work overtime you will make less money....

[@ThinkMoneyBenny]

starting my morning with coffee and a dave ramsey rant... It’s going to be a good day =)

[@KG0737]

Think Money Indeed LoL, love, love, looooove me some Dave R

[@alphaangel976]

kg1 Lol whats he ranting about now

[@Christinamychas]

Think Money best way to start the day!

[@AvatarEnd777]

You are a good man. Have a great day!

[@monicadhenderson8670]

Yesss!! I listen to Dave in my car 🚗 & home 🏡 while cleaning, doing laundry 🧺 etc. 😂

[@RossCampoli]

“They said” and “I heard” are the worst financial planning firm out there! So true! Too many people get misguided advice. No matter how well-intentioned your friends or loved ones are, you have to be well-educated about your financial plan in order for it to work at all!

[@Big-Government-Is-The-Problem]

every bit of education is an "i heard" or "they said" situation. i heard a decent amount of information from Dave that ive implemented and its greatly helped with my finances. i get what you're saying though, tons of advice is bad advice and people should do research from multiple expert sources to see if the advice they're getting is good or bad advice.

[@superchuck3259]

Lazy people are unwilling to do the work period. Lazy people just take the loans and go into debt. Lazy people might not itemize when they should and would benefit from it.

[@NipkowDisk]

Paying off your house quickly is one of the most freeing things you can possibly do. When I paid mine off almost 12 years ago, it was like someone removed a pair of heavy leg irons from me. Had a 15-year mortgage and paid it off in less than seven. DO IT.

[@nevilleguerrero2088]

Sooo I just paid my house off literally 2 hours ago and now I am broke but it feels good. Thanks Dave Ramsey.

[@KC-zn1mg]

Neville Guerrero congratulations

[@PInk77W1]

I’m in the process of buying a house cash right now. !!!!!

[@MJ-cf9nl]

This is the only kind of broke you want to be, Congrats!!!

[@tonypeters3320]

Congratulations! You're not broke, you're blessed!

[@koolandblue]

With how much you’re saving on mortgage payments, you won’t be broke for long. Congratulations! I hope to have my house paid off by this time next year.

[@KSlivinghappy]

What he is saying is so true. Pay the house off then you can keep your future money and a paid off home. I noticed that when preparing my taxes a few years ago. I was so shocked. The lie about home right offs. The liesssssss. Now I’m motivated more than ever to pay off my house. I have prepared my personal payoff plan and should be done in 4 to 5 yrs.

[@Susie.Poppins]

It's kind of fun setting it up on a pay-off spreadsheet and watching the balance drop off with each extra payment. I love the feeling!

[@andrewheffel928]

Dave is so right. We are nearly out of debt. Our home, cars, credit cards, and first rental property have been paid for years. We are about to pay off our second rental property. With my two small pensions, my wifes and my social security, and two rental incomes, we will only need a a small amount from our substantial 401K accounts to live the way we are accustomed to. Our financial advisors tell us our net worth will continue to rise throughout retirement. I was a mid level employee at an engineering and construction firm, my wife is the same. But we got to our present net worth slowly, by honoring God, saving, investing, and HATING DEBT.

[@rv3089]

Did you mean “wife’s” or “wives”? lol, it’s silly, i know. But congrats!

[@andrewheffel928]

@@rv3089 Thanks, man. Wife. She is great, but one is enough. Take care and keep listening to Dave. I wish I had him to listen to when I was 20.

[@rv3089]

_ David _ Nahh, the problem with your comment is that you wish there was no God. Sorry! Time to get off your high horse! 🤷🏽‍♂️

[@andrewheffel928]

@_ David _ I respect your right to be an atheist, but I am curious. Why in the world would you listen to Dave Ramsey, who is a dedicated Christian, and who firmly believes in honoring God by giving generously? Dave teaches giving generously is essential for a Christian who wants to please God. Dave gives away more in a year than most people make. I hate to put myself down, but I will. I am quit certain I am as dumb as a brick. I have made every mistake in the book. But when I decided I wanted to stop all the stupid stuff I was doing and at least try to please God, he turned my life around. If God could make a fool like me prosperous, imagine what he could do with a genius like you? Tired of misery? Turn to God.

[@andrewheffel928]

@_ David _ Are you happy with your life?

[@bobmarker6812]

What you save in mortgage payments, you build in your savings. It's like getting a monthly raise. Paid mine off early and never looked back. I said years ago, I'd rather pay the taxes than pay interest - it was cheaper for me.

[@peartfaldo]

at least you get something for the taxes

[@PInk77W1]

I’m a high school drop out and buying my house cash right now. Life is good not having student loans or $300,000 in student loans

[@ericdaniel323]

If you view it as an investment it can pay off. I went to a state university with the GI Bill and graduated debt free. My sister in law borrowed $200k to go to an elite private school and top-tier medical school. I'm doing great as an engineer, but even after paying off those loans she will make much more in her career than I will. Now, if she had borrowed to study theater arts or something it would be different.

[@muggzcervantes8283]

I hear u man i dropped out too!!! I bought a house in cash in the hood and bought my self a gun!!!!mission accomplished!!! life is good and I got all my income coming to me and still saving every coin I get,, I look broke but very wealthy now.

[@PInk77W1]

@@muggzcervantes8283 I’m not wealthy. I spent 30yrs doing it wrong before I woke up and did it right. But I’m wealthy compared to the rest of my life. LoL I feel wealthy.

[@muggzcervantes8283]

I take that back Semi Wealthy

[@billmelater6470]

@@PInk77W1 Wealth is relative. Good on you and best of luck to you!

[@iSlyOne]

She was referring to local property tax “mortgage” exemption. Which can be a significant cut in that tax.

[@kellyy9349]

Someone give me the same bad advice when I said I paid off my house 20+ years Ago. When I worked the numbers on the dry eraser board, the guy old enough to be my dad, was speechless! He In 2012, he lost his house to foreclosure because he over leverage to purchase a piece of land to built his future retirement home. Older does not mean wiser...

[@idharudhar5985]

I had a friend in college in the U.S., his parents had bought their house like 40 yrs ago and were still paying mortgage. Both his parents were working , middle class income, and they could afford to pay it off. I asked him why they were still paying mortgage and the response was tax deductions.

[@sermexflomex1423]

I have always done my taxes with computer software so I realized what Dave is saying. People are good at repeating advice to sound smart. But they don’t analyze the advice they have been given. I tried to explain this to people every time that they told me this.

[@vsx1967]

It's a percentage deducted from income. You buy a home because you need to live somewhere, not because you're trying to hide from taxes.

[@sableann4255]

He's correct. PAY YOUR DEBT OFF, INCLUDING YOUR MORTGAGE! I didn't want to pay Chase over $140K in interest. Make yourself rich, not the Bank.

[@TheBlueFalconPodcast]

Sable Ann paying off your mortgage quicker allows banks to loan that money out again plus the interest that was paid. Consider the reason why banks strategically incentivize people to pay loans in shorter terms, I doubt it’s because they want to make less money.

[@jeremycleary2002]

Paying my house off in 2 weeks, 22 years early at age 42. I’m stoked!

[@brianhale4017]

Last year I paid my last debt off at age 42. It's been 8 months of bliss. The happiness of having no mortgage doesn't go away. It always feels nice and you'll think about it frequently. 👍

[@gethighonlife11]

Thank you Mr. Ramsey. I will have my house paid off by the end of 2020, and I have been arguing with people who say that paying off my house is a bad idea because of my losing the tax deduction. Thank you for confirming that these people are idiots!

[@BrokerLower]

How'd you do? Go as planned?

[@Peppermon22]

It’s like my mom telling me not to pay off my car because I need it for my credit score. I laughed at her. When I do get a home I plan on making extra payments.

[@kenny3269]

OMG - I’ve been making this argument for years! You should hear my “investment” professional friends try to debunk it and talk about leveraging debt (as i put my fingers in my ears and go “lallalalaalaaalaaaa - can’t hear that foolishness”)!

[@bamagirlce12]

Seriously, "oh, you can get back a 22% of what you paid! Isn't that a great deal!"

[@beet4416]

@Zachary Beaupre that's what the rich dad, poor dad guy preaches. To not pay off your house, instead take more loans to leverage assets, like a rental property that brings in cash flow. This is good but not something the average American can do. Less risk to follow Dave's advice.

[@alexc5369]

@@beet4416 Dave's advice is actually better from a mathematical point of view over the long term. Yes, leveraging to buy properties allows you to grow your portfolio faster in a rising market, but also ties you to it, eg. Market rises, with leverage you make 10 times, when it drops you lose 10 times, you need enough of a buffer to take on this. Buy with cash and it might take you 8 years to purchase your first property. Your leveraged friends might have 8 properties in the 8 years, then your 2nd one might take 6yrs, your 3rd might take 3.5yrs etc. Eventually when another GFC hits, you will be able to buy multiple properties in a very short time frame because of the discounted prices. Your leveraged friends will be the ones forced to sell them to you.

[@alexc5369]

@Zachary Beaupre but hence why you need buffers, I know loans work differently in the U.S, I'm in Aus, here they don't do 15 and 30 yr fixed loans, so if a recession or something occurs, interest rates would generally rise, causing your repayments to increase, this is why you need strong buffers and income to allow for this otherwise you are forced to sell. So in a way even if you don't sell you are still losing money on the increased interest payments.

[@beet4416]

@@alexc5369 Fixed rate and your cost is amortized so you know every payment. If you're renting a property that's in the middle to low class, you should be fine as everyone needs a place to sleep, even in a recession. But if you are renting a high cost apt, then people may move to a lower cost apt, leaving your rental vacant.

[@uscfroadie]

One of the funniest Dave Ramsey videos. I refer this to so many people that tell me I was stupid to pay my house off.

[@carlam6669]

One way to view making extra payments on your house mortgage is that it is like a long term certificate of deposit giving you an interest rate which is the interest rate of the loan itself. This is a very safe investment giving a much higher return than any CD available at a bank. Once we paid off our mortgage, we took out a homeowner’s line of credit. This took the place of the emergency fund you are supposed to keep in a bank. I can’t remember if we ever used the line of credit. If we did it was paid off quickly, not the minimum payment. We then accumulated enough money for a down payment for purchase of rental property.

[@jaye9300]

This is the best, most useful video Dave has ever released. So many crazy folks just do not believe this information. It’s the most misunderstood tax concept out there.

[@iviaverick52]

You are taxed on earnings, not on static assets. Owning a house outright doesn't make taxes pop up out of thin air. You have been paying the property tax all along as part of the escrow payment with your mortgage loan. The only way taxes on a home go up, is if the assessed value of that home goes up.

[@cherylrogers-smith1026]

I truly Love you. Everything you are saying in this Lesson applied to me. :)

[@DomoArigatoMr.Roboto]

Thank you Dave, for breaking this down in layman's terms so I can finally understand how this works! Glad I clicked!

[@aaronkronawetter6169]

I don't pay extra on our mortgage anymore. We itemize and I'd rather use the extra I'd pay toward the mortgage to invest. I make better returns than my 3.75% mortgage rate and I still have liquidity. I look at my mortgage as an inflation hedge since it's a fixed monthly cost so every year the cost actually goes down compared to everything else.

[@Supertzar999]

I've got a 3.5% and will never pre-pay. At that rate, I'd spread it out over 60 years if I could.

[@time2heal]

I have a 270k mortgage at 3.75% So don't pay off and invest in my 401k? Am I understanding this right?

[@aaronkronawetter6169]

@@time2heal yes sir!

[@CarlosRodriguez-hb3vq]

For 10 million American households, taxes went up with the 2017 tax changes that also raised the standard deduction. The increase was clearly targeted at states that didn’t vote for the current regime.

[@brianc9036]

Thank You Dave, I have said this for years when people talk about the interest deduction. You spend lets say $100 on and you net $22 in savings. So you basically you spend $1 on interest and get .22 cents in tax credit. I am not arguing for or against taking a loan but the whole interest write off narrative has always been b.s. but especially now with the increased standard dedication.

[@philmarsh7723]

Dave. I love your attitude on paying off mortgage. Better yet is to never buy anything until you can pay cash. If I can't pay cash, I can't afford it! Most of my friends couldn't understand why in the world I'd pay cash for a house. Well, for psychological reasons, I didn't want to be paying a mortgage if I had any risk of being laid off. Moreover, the interest on the mortgage is a guaranteed rate of return on that money. Risk Free return.

[@singhjg]

Advice doesn't apply to California homes where you pay mortgage interest, property tax and SALT which always exceeds standard deduction of $24k for MFJ

[@scbutler41]

Let me send this video to my wife, we just had this heated convo.

[@tchrisou812]

You may want to show it to her on paper and "discover" it "together" with your numbers and use the caveat the she has a point but not in your situation. Why? Happy wife, happy life. I highly doubt Dave , while right, would speak to his wife the way he does in this video.

[@parkerread154]

Sean Butler If you have a debt, or loan that needs to be pay, or just want to make some extra cash text 1 [phone] for more info.

[@LittleHatori]

Dude don't get into another fight. First, Send her flowers, apologize, and then have a calmer discussion of improving communication and conflict resolution. Because if she's too upset right now, she will not listen to the video or you & be resentful. (80% of women are driven by feelings 💯.) Talk to her first and resolve the tension from the fight. Move on, have a happy marriage. Subtly and softly peddle Dave's plan & philosophy into ur finance talks. In general, try to get her turned on to Dave & the baby steps. But dont mention the mortgage thing yet. Then, Maybe 2 months later, (hopefully agreed on baby steps) bring the tax & morgate thing up again, casually, mention dave again and let the convo fizzle out if she doesn't seem interested... 2 weeks later take her out on a spontaneous dinner date, drive by houses on the way to the restaurant, and organically bring up the mortgage discussion, FINALLY IF UR WIFE DOESNT LOOK IRRITATED BRING UP THIS SPECIFIC VIDEO DAVE HAS ON MORGATE AND TAXES. Hope u dont get divorced bro 🙏💦

[@caasinauj]

someone will be sleeping in the living room LOL

[@mrfred1000]

@@tchrisou812 "Why? Happy wife, happy life" Whoever created this also created "The Customer is always right" line. It's bogus. I wouldn't discover jack, wouldn't even have had a heated conversation. If you're married, you're the husband, you take care of all of this, what's the heated convo about? That's the problem with modern ideology and marriage. Take care of your wives, be respectful and so on but that's why you deal with all this stuff yourself and make decisions based on morality and facts not feelings.

[@serenababy6358]

My mother and my in-laws have advised my husband and me that they needed their mortgage tax write off to avoid owing the IRS. They've said they needed the write off to break even. Both parents have struggled with money and have not reached financial freedom and probably won't in this lifetime. Dave is so right. Don't take advice from broke people!

[@BlakeBake]

One of my favorite Ramsey videos.

[@jordanmadden7388]

People thinking they are saving money on taxes by paying mortgage interest and taking the standard deduction is probably a very true statement. I don’t blame the public for not understanding this but with the amount of stuff they teach in public school systems you’d think personal finance and taxes would be one of them.

[@joeandersen6553]

Excellent perspective and advise

[@patriot1303]

Taxpayer here - we itemize and our deduction is significantly higher than the $24k standard deduction

[@jerrymaushard3835]

Can you share what you are itemizing? Charitable giving has to be huge.

[@pillarsofserpents]

hahaha. i love this one. Dave shuts down this argument with math and facts.

[@harryl7946]

Watched it for the first time again. And it still makes perfect sense to me. 😂 Thanks Uncle Dave for caring.

[@lisalister8002]

Love a Dave rant!

[@Travisjoe31]

Pay off your 4% mortgage keep your 20% interest credit card balance

[@maryfields1382]

Another bonus to paying off your mortgage early... If you have a 401K, you can take the money you were paying on your mortgage, put it in your 401K instead, and lower your taxable income. Keep more of your hard-earned money.

[@BagsNBaguettes_327]

Dave is right here, people are idiots and non educated when it comes to taxes. Stop listening to your reads and actually read the tax laws

[@gregariousaccountant3025]

So correct! And even if they ARE itemizing, businesses/individuals shouldn’t make decisions solely based on taxes.

[@HowDo-YouDo]

I'm VERY thankful that I paid my mortgage off early.

[@ericjswindle]

People’s obsession with avoiding taxes has got to be up there with accruing debt on the list of things that keep people poor.

[@mariaweller3408]

Love Dave, so direct and great practical advice.

[@NIN_Mase]

This questions hurts my head.... ridiculous

[@waza987]

It’s the little things you notice. Joint married couple filing and tax deductible mortgage payments are not things that exist in my country. If they did my families tax would be half what it currently is. America might have some problems but you need to appreciate what you have got.

[@Jonathan-wm5ju]

Broke person here. Dave is right. Don’t take financial advice from me.

[@Ksee89]

That makes as much sense as getting exicted about the points on a credit card rewards system 😂

[@kh884488]

Just because it's a tax deduction doesn't make it free.

[@horacepierce9210]

Dave, it's not a dollar to twenty-five cents, it's a dollar to 2.5 cents

[@skibum6422]

Anyone that says they need the "tax deduction" mortgage write off can't do simple math.

[@warriormonk169]

Great advice! I've only watched 4 videos from Mr Ramsey and it's been enough information to plan my mortgage pay off and I don't own the house yet. I go into closing this month.

[@T25de]

Kids love strategy games The new kids are learning more and more about the financial Game and taking advantage of it.

[@Brian-ug3el]

Wouldn't putting the max in your retirement account come before paying extra on your house. On average, aren't these earnings greater than the interest rate on a mortgage?

[@Supertzar999]

Actually, it's better to put the max in your retirement account, put any extra in investments and NEVER pay extra on your house.

[@keithfreitas2983]

@@Supertzar999 ???? You know if you have a $100k mortgage you will pay 3 times as much in interest. So putting $100 extra a month deletes at least half of the interest.

[@SomeLazyDr]

One caveat with Dave's example - interest on mortgages aren't simple, but compounded towards the front of the loan. The first five years of a 30-year mortgage are almost all exclusively interest payments - it's why you only own 20% of the home after 10 years, not 33%. That means in situations where you are single and own a home over 300k, it can occasionally make sense to itemize the home, provided you literally save every receipt with sales tax over that year as well. Ultimately, consult a CPA if you think it might make sense, but his wider point still stands - it doesn't make sense for most people to itemize.

[@milkncookie]

Yes higher taxes if you itemize. But it also means you get to keep more money in your pocket. Your choice. More tax with more money or lower taxes with lower money.

[@markmcdowell5356]

I agree with Dave's comments about not spending $1 to save 30 cents. However, what he doesn't discuss is what you COULD do with the money you are using to pay that mortgage. For example, if you pay off a $100,000 mortgage you save $5K per year. But, if you invest that $100K in mutual funds and average 8% returns (which is lower than Dave often quotes) you actually get $8K in growth per year which is $3K MORE than the savings on the interest. It's not as straight forward as Dave shares here. Having said that, I paid off my mortgage because the emotional value was worth more to me than the potential $3K extra I might earn.

[@mattpalmq]

This reminds me of people who don't want to get a raise because they think they'll lose it all in higher taxes lol

[@July.4.1776]

Matt P ... Correct 😊

[@codyhughes148]

But if you donate $10k to charity, isn’t that the same thing is deducting interest?

[@olliehopnoodle4628]

Years ago the mortgage deduction option could be included in the 'buy or rent' question. Interest rates were very high. It didn't mean it always made sense to buy instead of rent, there are many other considerations, but the mortgage deduction was one of the line items. Technically, it still is a consideration but with the high standard deduction and low interest rates it has less of an impact on the decision.

[@HomeImprovementInsider]

Dave is for real...knows his stuff

[@myquest84]

In Dave's example it's even dumber than he describes. Do the same math with the standard deduction and compare with the itemized and you're probably only saving a few hundred in taxes while paying thousands in interest.

[@supersportrsz28]

Great content, thanks for sharing

[@anabolic123]

I was never a fan! The more and more I listen to Dave…the more I like him

[@artemiszero2153]

If I had my own house. I would pay of that mortgage as fast and as soon as possible. It would free up that money that you could put towards other investments.

[@July.4.1776]

Wow some people are actually complaining because they are paying over $10,000 in mortgage interest ? I am sorry, but if you can afford that much in interest I do not feel sorry for you.

[@valvend]

You would get a business deduction on your home based business if you use like a segregated area like one bedroom for your office. Look into that if you start a home business.

[@dougb8207]

I'm confused as some aren't happy about the 2017 mortgage interest deduction limits to $10k, but if they don't matter much because the standard deduction is $24k per couple, what is the big deal?

[@RBXmotorsports]

Broke brother-in-law who has an opinion 😂😂😂

[@johnfortes2171]

I found that it is better to work for yourself instead of overtime IE- I remodeled MY home myself instead of working overtime and then paying someone else to remodel- the savings were great and I didn't feed the tax system!

[@MrSteeDoo]

Ye s indeed. You are losing ground if you take your AFTER tax money and give to someone else and it's BEFORE tax money for them. Pay it to yourself tax-free

[@wizardwingman3654]

If your earnings are $80K and you’re in the 22% tax bracket your effective tax rate isn’t 22% so the $2200 isn’t accurate. Other than that great advice! I guess I should have waited until the end of the video before I wrote my comment.😊

[@annahopp]

We paid our house off as soon as the higher standard deduction was available.

[@MrTresto]

Yes the only reason to not pay off your mortage is because you have the money invested in something at a higher percent than the mortage. Wait, that's something that actually happens. But taxes is definitely not a good reason ...

[@404TRUCKERTV]

Lol... good job Dave. The reality is, most people don't do their own taxes so, all that you said went over their head.

[@Ramdodge582]

over 600k home loan puts you around 24k of interest @ 4% for those wondering when to start itemizing.

[@jordanneal576]

If me jumping a Tax Bracket increases my taxes by $2000 a month (the cost of my mortgage) I'm bouncing out of this country.

[@videosandmore5277]

Unless it's a pre-1964 silver Quarter, Dave... 😉

[@carultch]

Without specifying otherwise, it is an ordinary modern quarter made out of copper, nickel, and zinc, that isn't worth more than face value.

[@ThePeterDislikeShow]

Dafe hates those too! Haha.

[@vsx1967]

Had my W2 handy...paid 18% in taxes in 2019. (Fed + State, 4 separate taxes). Much more than 5%. Pay off the house!

[@MrSteeDoo]

The W2 tells you how much you paid. It doesn't tell you how much you owed.

[@vsx1967]

@@MrSteeDoo After a refund I'm still around 17%.

[@mannyflores470]

The deductions are so small from the interest there's no point of risking so much asset for such little return. Pay it off.

[@unapologetictj5792]

So basically anyway you look at it, you are better off debt free.... SHOCKING

[@muhammedsuleiman8047]

Maybe it would work if you had a rental property that was paying off its own mortgage along with a mortgage on your own house you are living in. So like 2 half million dollar mortgages with a 5% interest then it makes sense but otherwise i agree

[@kaboose07]

People who claims they know about tax deduction probably heard it from their friends and family too. How about taking a course and learning what it really means.

[@johngonzalez9660]

My husband recently passed away. He has pension and life. I am planning to retire this year at 65 yrs old. Please advice me. Thanks

[@jflowers090]

Dave can you talk about investing in real estate rental property vs 401k. As far as long term wealth and what you recommend.

[@spacetoast7783]

Stocks usually have much much higher returns than real estate.

[@eezy251able]

Taxes? On the home you live in? How come? We don't pay tax here in the UK, only stamp duty prior to purchases the home.

[@DoctorSmartyPants]

Property taxes....generally collected by the county you live in. They pay for things like our public school system, and fire department/public safety, as well as supporting county government.

[@kool_kit]

Tyson Spiller like council tax in U.K.

[@sprintbulls]

great break down

[@yocampout]

"They say it's not a good idea because it'll lower my credit score to pay off my house...." like are u serious??? "They say you got a great interest rate so just make the payments and build equity" why?? If I can pay it off and own it why just do that??? I don't understand familial advice at all.

[@jesseperez1907]

I'm still a little confused about it. I have a 30yr mortgage at 5.5% for 147k. I make $100 extra monthly payments towards principle. I make 54k a year am I able to itemize as well? I'm single.

[@djspike969fm]

Good advice.. unsavory delivery.

[@jessicabixler1658]

When I was making peanuts I took the itemized deduction...

[@danielr951]

If there is a CPA that advice that they ought to be discharged that’s tax 101

[@RoyboyBean]

What about having a low interest rate on the mortgage and put extra money in investments that get a better interest rate instead of paying your mortgage off faster?

[@ShaneConQueso]

How come this dude who's supposed to be so smart still references "Countrywide" constantly when they went belly-up 12 years ago? Does he tell his listeners to fly PAN AM too?

[@greenearthblueskies8556]

🤣

[@capnskiddies]

Is the tax code in the US so difficult as to be incomprehensible, for regular employees I mean? We're on a Pay As You Earn & marginal system. Your first 35000 is @ 20% The rest is @ 40% You work out these figures and take your deduction (we call them credits) from that number. Social insurance is 4% gross. Total taxation on earnings is around 20 to 27% depending on your credits (kids etc.)

[@DuffyWayne]

add state and in some cases local income tax, medicare tax, property tax, car registration fees, and in most states sales tax on everything you buy... and you'll realize government is keeping more of your money than you are

[@gethighonlife11]

Preach Ramsey, preach!