Pay off a 3% mortgage or keep it and invest @ 6%? My first question is not the interest rate. It's where the payoff money is coming from?
A brand-new account joined X this month, has 99 followers, makes one post, and that post has 1.5 million views. The story goes like this. $500k house bought in 2021, a divorce, Dave Ramsey, then the mortgage gets paid off.
Maybe every word is true, but if you can wipe out a mortgage on a $500k house in five years, you’re are already in a financial situation most people cannot relate to. Where did the money come from? What was the income? It’s important to read the math before we react to the lesson.
Most people are trying to make a housing payment and invest a little on the side. If you have the income to comfortably keep a 3% mortgage and invest money earning more, that can make sense. That money you’re growing can also give you protection if the household income disappears. 👀
There’s really no one-size-fits-all answer.
I have about 10 years left to pay on our house at 2.25% interest. (I was a mortgage broker, I have connections 😅) I make the payment, invest some extra when I can, and if those investments ever grow big enough to wipe out the mortgage, you better believe I'm going to consider doing it.
Peace of mind is real. If my husband ever gets hurt or needs to work less, I want our family to need less income every month, not more.
Meanwhile, I know people who have posted real content for years and fight to get seen while a one-post account gets a million views. That alone is a good reminder not to let viral bait make financial decisions for your house.
🐈 🎣