Should You Pay Off The Mortgage?

The Principle:

Are you trying to decide if you should pay off the mortgage? Or if it’s worth refinancing? Would your investments be better made elsewhere?

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

Should you pay off your house sooner and save on the interest? Is it worth doing the process and fees to refinance and get a better interest rate? Or is there another way to invest that is more beneficial?

On today’s episode of the Retire with Integrity podcast, Brian shares several examples of how people have invested their money as it relates to real estate. Some ended in failure and others with success. Brian has flipped a lot of real estate himself and has seen the other side of things. Ultimately, the decision depends on where you’re investing your money. If you are otherwise just putting your money in a CD, then paying off the mortgage might be the right decision for you. But if you are able to get more money in the stock market, it might not be worth it to pay off your home sooner.

What Should We Consider:

For some, this is an emotional decision and for others it can be a more mathematical one. It comes down to a preference. Some are more aggressive with their investments and pay the minimum on their home, whereas others want to pay off their home as soon as possible to be debt-free. Every situation is different.

Sometimes things don’t keep just going up like we think it will. Think back to 2008 when the housing market collapsed. People went bankrupt by being too aggressive with their investments in the real estate market. Consider not only what you might make, think about what you’ll have to sacrifice and also what you could lose.

Listen to the full episode or click on the timestamps below.

[0:16] – Should you take the opportunity to refinance?

[3:32] – Arbitrage is when you invest borrowed money but make a better rate of return.

[5:14] – It comes down to preference on how you invest.

[7:38] – Some people were taking equity out when the housing market was good.

[8:15] – The booms bust first.



Today’s Truth:


The Host:

Brian Bowen – Contact

Should you pay off the mortgage? Brian Bowen of Integrity Financial Planning gives us some tips