I'm not sure U-Haul is the ideal place for accurate stats showing which states people are moving to and from. Especially if you compare housing price trends. I don't see housing prices skyrocketing upward in Florida and a few other top tier places on that U-Haul list.
I’m 26 and bought a home in cash in a LCOL area. No debt whatsoever Well yesterday I got demoted at my job, so I came in today and quit on the spot When you live below your means and stay away from debt, you have freedom and the ability to walk away from any shitty position in life
It is a misconception to think you own your house as the government is the owner; stop paying your property taxes and you will find out who the real owner is!!!!! But yes, if it were possible to own your house it would be grand.
The state wanted a portion of my property for a highway expansion and they paid a hefty price for it the state sure seemed to think I owned it because the fat check was made out to me
Definitely in the pay off your mortgage early camp. Just for the peace of mind, that is priceless, it's a different type of wealth that can't be measured in dollars.
We finally paid off our mortgage in our senior years, but property taxes plus insurance are just as substantial, not to mention endless home repairs. Home ownership is a huge unending financial burden with or without the bank taking its cut. Almost envy those 19th century settlers who put up their cabins and didn't have anyone to pay every month for the privilege.
Yes, they are substantial. We never truly "own" anything, not even our money. Everything is liquid and moves through us, to other people and entities, eventually. Rent or own, you'll "owe" people and services to insure it and repair it, the latter being something I'll do myself until I simply cannot anymore. There is no perfect solution.
Is this a test? Which is better.. paying house tax & Home Insurance... OR Paying Taxes, Insurance, AND Bank Mortgage? In Florida I had a house with No mortgage so was able to SELF Insure. Plus no HOA fees. If one has a mortgage, they are locked in to High insurance rates. I did much better by having no mortgage because I got to sell at a respectable profit.
We paid off our mortgage years ago, and have no debt. So glad we did. Look at the economy now. It's a mess. Best to have no mortgage, and no debt. Continue to save as much as you can. While many took vacations, I applied the funds to the mortgage balance each and every month. A debt is a debt is a debt. A mortgage is a debt. Pay it off.
I live in Australia but it all works the same. Paid my house off in 10 years- that was 15 years ago. Bought a small factory unit 12 months after that - paid that off in 20 months. Been debt-free for more than 10 years and been saving for retirement ever since. Even get to pay cash for cars by saving up a bit. My real estate has increased in value by 400% (we have insane real estate prices here). Retiring at the end of next year at the age of 60 and will sell up, downsize and invest enough to live off the interest and pass a tidy sum off to our 3 kids when the Big Guy upstairs calls “time”. Best part - zero stress when you live debt-free.
@@lidieriShould we talk about homeless, gun deaths, safety, economy, the cancel culture capital, Joke presidents, Immigration, drugs and drug deaths, multi nationals, Big pharma, corruption and the general feeling around the world America has become a consistent joke. Sorry was running out of room to do a full list.
@@neolion8150 Everything you’ve mentioned is true. There is a chance that we will start to reverse it on Monday but I don’t see anything positive happening in near future in Australia… And you have to admit that your country and Canada are the absolute worst in protecting freedom of their citizens from the Western world. Yes. China still beats you guys.
A paid off home is nice, but even better is financial independence. If you achieve FI before the house is paid off then its even sweeter when the house is paid off.
Latter 50's, received a financial gift last year. Paid off condo and credit card this month. Not in a good situation for income, but it's a huge relief not having a $700 a month payment, plus crippling credit card debt.
Once your mortgage is paid off, paying your other bills is less stressful. No more thinking about seeking a second job or working overtime at your current job. When I paid off my mortgage early 13 years, I paid off all my credit cards & car payments within 2 years. Dept free is a great feeling. 😃 👌
We paid off our mortgage several years ago, very happy with that decision. We are staying in our home as long as humanity possible, so we are good 👍🏻 Debt free is really the best way to go if you can, it gives you peace of mind in this crazy upside down world.
10:00 the time when you bought a house definitely matters. The people who have been waiting 4+ years for a crash are now looking at homes that costs much more then what they were looking at in 2020.
I retired at 62 with all three kids done with college debt free for them, they moved out and my home paid off. That was my goal. Also saved a lot in my 401ks, which I rolled over into IRAs. I think my best interest rate was around 4%. We refinanced once to a 15 year mortgage and cut 5 years off of our 30 year with a lower interest rate. we are debt free. My daughter and her fiance bought a house in Indianapolis for $280K much different than home prices here in California, but I would not want to live in Indiana.
I paid my mortgage off in 7 years back in 2008. Ever since then I invested all the money I would have used to pay the mortgage. Now I won my home clear and free and have investments. I'm happy I own my own home in the crazy Northeast where home prices are insane. I'm retired and debt free. I have a nice fat 401K I never have to touch because, what I get in Social Security and Pension is more than enough to meet my expenses with some left over to save. I don't even have to take 4% out per year to live. I'm not eating steak everyday and spanking supermodels but I'm not splitting pills, eating cat food and buying dented cans to scrape by. I life a dignified, fun but frugal life. NOT Cheap frugal.
I'm an independent contractor and work seasonally. I am able to make decent money but it's not always consistent. It's also physical labor. So I like the idea of paying off a mortgage early to give me peace of mind for when I may not be able to get work or in a case where my body may get hurt and I'm not able to work anymore. I've been conflicted about it because so many people tell me I'm better off investing but I almost think the peace of mind and stress relief is worth more than making the most money
Title theft is a big problem with a paid off house. Once the mortgage/deed of trust satisfaction is recorded, all the criminals know there is no lien on the house. They can file a fraudulent deed against the house. You can counter this by immediately getting a HELOC recorded against the house. Then this HELOC lien will be in first place and make it less attractive to title thieves. Of course, you don't actually want to use the HELOC. You normally need to pay an annual fee on the HELOC if you use it or not. Recently, in Raleigh, North Carolina, a title thief recorded a fraudulent deed against the $4 million house of a prominent dentist. Look it up. Eventually, the criminal was arrested. However, the dentist/homeowner has to pay a lawyer about $8000 to fix the fraud mess. A $100-$200 annual fee on a HELOC is much cheaper.
Mortgages are a huge rip off regardless of rate because of the amortization schedule. If you only make the regular payment, you are paying mostly interest for at least a decade.
Table is better if you get 15 year mortgage & table for 2 percent int rate mortgage looks a lot better than 7 percent If you are paying 2 percent int and home prices goes up 7 percent a year That’s 5 percent income in money that’s not yours & it’s tax free if you sell the house
It depends on the yield curve what makes the most sense. Sometimes the difference between a 15 and a 30 isn't much. May as well take the 30 and just make extra principal payments as if it was a 15... you have the flexibility to stop making extra principal payments if life necessitates it.
Remember that the word Mortgage means " Death Note" gage is debt and mort means death. You will pay untill you die. I have very little savings as a single person but own my 250k, 1700sq ft brick house in north fl and am able to live comfortably on s.s. im 73.
Those ultra low mortgages are the reason homes are so expensive. I used to laugh at realtors on the news telling people that they can afford more house since the rates were so low! It turned out they could afford more mortgage, not more house.
Paying off your mortgage is the smartest thing you can do. You never know what the future may hold but if worst comes to worst you will have a roof over your head. Debt free opens up a whole world of possibilities, retire early, leave a stressful job for entrepreneurial endeavors. Pay cash for kids college or other responsibilities. Due to unforeseen circumstances I had to refinance my home and prolonged my mortgage until I was 65. In the years since with no bills I’ve been playing catch-up savings & investment from years of living month to month. I am healthy so it’s worked out but had just one medical issue hit in my 50s, 60s I’d be in a lot of trouble. I don’t think people need to think of their primary home as an investment. I remember being told having a mortgage benefitted me in tax breaks, etc. All bunk to a good portion of us that aren’t millionaires.
FYI, having a paid off house doesn't make you immune to any financial risk. Depending on what happens you might very well have to pull the equity from that paid off house to cover the cost of the emergency.
@ True and at least you have that option. I haven’t stowed away the million 🤣 so if I no longer needed my house but needed the money for long term, God forbid, at least I’d have a safety net. Tell you the truth, I’ve worried about money my entire adult life and I’ll be damned if I’m worrying any more til something slaps me up side the head.
I pay my house off 4 years ago and is the best feeling in the world and peace of mind istead of invest, and tha sense of security give me the push to leave my job of 33 years in the one i was miserable and now i have a better job making more money and my house is pay off thanks god everyday, thats what i tell my friends pay your house.
New Mexico’s net loss is nominal. Moving from Texas in 2021, I can say that Albuquerque in particular works for me. Way less people than the Dallas area that I lived at from 2007 to 2021. I do not miss the traffic and flatness of the area. Sure there are negatives here but that’s called the bad side of town. I love having seasons and mountains that I live by in the foothills. It’s the best open secret and I would not mind the population staying flat
We worked on paying our house off early so we could be completely debt free. The VA loan was at 2.5%, so we had a good rate but wanted to be debt free. We were planning on paying cash for land and having what we want built. I'm not sure what we are going to do since everything skyrocketed around here from all the outsiders showing up. Most fled because it's cold af here but left us with the price hikes. I'm not paying $175k for .41 acre lot. I wanted at least 5 acres anyway.
I paid off my house early -- my interest rate was 4.25%. Owning free and clear is awesome and took a ton of worry off my plate. You also have to be disciplined to invest for the additional money for the full 15 years (or 30).
Debt free here, mortgage paid, car paid and no cc debt. Such peace of mind! Not a slave to a job I hate either :) I work full time but if I want to find another job, I don't have to worry about "paying my mortgage or car payment". Keep the monthly bills minimal (phone, cable, etc.)!
@@Scodura1 Glad you live in your parents basement. If you rent an apartment or house, property taxes are rolled into your rent. You may or may not want to insure your contents in a rental. Nice try thought.
Guys like you are just destroying the American economy. No debt? Not wasting hour money on unneeded toys.? Being happy in your work? Congratulations bud, being content should be the American Dream.
Yeah I screwed up. Paid off the house because I learned what I was paying per day in interest. That was in 09 when the market was crashed, I had a cheap payment, should have invested in the market, I'd be a multi millionaire.. But, you just don't know, I took the guaranteed safe route.
I pay $150 extra each month. It will be done in 7 years It will pay it off about 20 years early. My interest rate is 3.25%. My mortgage ends the same month I get Social Security.
I found a hard money lender. I went to a house that had sold at the sheriffs auction. The house was now in the redemption period and I paid the $28k to get it out of redemption and paid the previous owner $5k. $6k for a two month loan on $40k. The house I owned was set to close during the holding time. My equity from my other house paid for a new roof, windows, garage doors, two new bathrooms, two new kitchens, hardwood floors throughout. It has 4 bedrooms. It is a rambler walkout with two living rooms and kitchens. Fireplace up and down. It is laid out with the lower level having its own “front door”. It’s not a duplex technically so I don’t pay as an income property. I planned this all out after first seeing the house. I had a hard time getting a $40k mortgage but joined a credit union that was willing to do it. My now roommate leaves the rent in the laundry room, we never cross paths. Being disabled I need the extra income. So close. It came out as a $40k mortgage and everything is new in it except I still need to paint upstairs. My roommates house is all painted and stained. Was a lucky week that Saturday in March 2016 and I knew I had the mentally ability to pull all the finagling off. Had to schedule everything in a six week period from the roof to the floors literally.
Thanks for great information. I agree with you on peace of mind with paying off debt. I don’t know how ppl live with millions of dollars in debt…even if it’s all just numbers.
Insurance cost required with mortgage make it more sensible to pay off mortgage and self insure. 2% isn’t enough to write off on taxes, much less 1.9 interest.
I would probably self insure if I lived in a suburb or the city, I live in the forest in the Sierra mountains near Yosemite and I only worry about getting smashed by a giant tree or the house burning down.
Bought my property in 2016 for $154k with a 15 year at 4%. Kept the mortgage while the property was a rental. I made it my home late 2021 and paid the balance in 2022. Its the first property I owned out right. Almost 3 years later, I can say its nice to see my savings grow much faster. Property taxes and homeowners insurance cost me $3400 combined. Paying off the mortgage is a great feeling in my case. I figure it will help with an early retirement in a couple years when I turn 55.
If your house is paid off and something bad happens to it, the insurance money goes to you. If you have a mortgage, the check goes to the bank and getting the cash entails jumping through hoops.
I never looked at my roof over my head as a commodity. I paid my house off and eat my bowl of corn flakes like a teenager without a care in the world while stack 90% of my income every two weeks. I was once that guy who paid a mortgage for 8 years before having enought with licking stamps to send my payments in each month. Its dumb for me to continue to pay a mortgage while investing and have debt on one hand, and the possibility of losing money in the market. I sleep good at night and im sure i added years to my life for the peace of mind of having my mortgage paid off. There is no price to peace of mind.
The fact that you can save 90% of your income by simply paying off a mortgage means you make a lot of money. So you were going to be fine either way. Most people aren't in that position.
@TheFirstRealChewy Believe me, there are people born into wealth and they never had to worry about the interest rate on a 30-year mortgage. Luck for me, I was born from a working class lower income family. There is nothing special about me... just discipline from having car notes, credit cards and student loans. Eating out, Starbucks coffee was replaced with home cooked meals, lunch pales and instant coffee with the flavor crystals and all 😆. Today, I look back on it all and realize, I have a very low tolerance for being in debt, and a very strong lack of trust in those that controls this economy.
I stumbled across your channel but the info that you share has enlightened me so well on so many topics. Please continue to share your valuable insights!
It's a great idea, 1 less payment to worry about, never mind it's a person's biggest investment. I've knocked years of the life of my mortgage since we closed in 21.
It depends on their objective. If they are heading into retirement and already have enough for FI then they are just lowering their expenses before the transition. If they are trying to build wealth it's better to invest. There are people who will say they should always pay off a home first, but that's similar to saying a company should never use a loan or use money from investors to make more money.
@@Francisco-po1cfthis guy is a clown advising paying off mortgage early at 2 percent int If you have extra cash A) pay off high int debt B) contribute to retirement You can save on taxes putting money into traditional ira Even if you don’t want to risk money in stock market invest it in short term treasury bills paying over 4 percent a year (In your ira )
On a 30 year mortgage...if you have been paying 15 to 20 years...do NOT pay off the mortgage. You have already paid almost all the interest!!!! At that point it's free money.
But at that point a mortgage could be paid down to the point where it's no longer worth itemizing and it cannot be deducted from income tax. If someone has 5 years or so left on a mortgage it's quite justifiable to focus on paying it off.
Paid my house off 15 years early, the peace of mind is priceless. No property taxes either since I’m a disabled vet so all I have is homeowners insurance on my own. At 43 years old I’m sitting pretty, so I’m investing and saving like crazy to get ready to capitalize on great opportunities that come ahead.
I paid my mortgage off within 10 years of buying my home. And that was 20 years ago. The amount of wealth I have accumulated over the last 2 decades without being saddled with mortgage debt is incredible. THAT….is the proof statement beyond all others
I refinanced in 2011 not realizing how mortgages worked and found out that it put me back at 30 years again. I was very angry at myself and started researching how they work. Now I am on a 5 year fast track to pay off my mortgage. No HELOC tricks or anything like that, just paying principal payments. Will be paid off about August of 2026. My original pay off was 2041. Currently paying 2700 a month in additional principal. Have only strayed from that two times so I am doing really good. The savings will be 80,000 in interest. We eat a lot of chicken but the piece of mind will be worth it. Also working on paying off the credit card. About 8 months to go on that. I do have one higher interest loan but to me paying off the mortgage feels more important mentally even though I am breaking the rule of paying off the highest interest first.
Pay off everything. Unless you have a crystal ball you never know you may have an issue. My house is paid off thankfully my lodging would be something like 4 k a month with todays rates. That would be half my pay. I hope to retire someday so i been saving as much as possible. Having no debt on cars, house, no debt at all is the way for me!
I am 60 and debt-free but have always been. I've been on both sides of the camp. I have a friend who's dead it up to his eyes with properties but leverage money isn't taxed but the freedom of debt-free I believe is the way to be
The things you own, own you. My Dad paid off everything before he retired. He frustrated taxes and insurance increase every year, so much for owning it free and clear. It costs him 10k a year to keep his stuff he paid off 20 years ago, lol...
I went through that dilema and ultimately chose to pay off early and im dam glad we did. 4 months after we paid our home off, I broke my back...just.likenthat income slashed by 50%.
I did. We paid our 15 year loan in approx. 11 years. Happy we did. It gave me peace of mind to have it paid off a couple of years before retiring. Saved the same amount of P&I to increase our emergency fund. Our rate was low, but there’s peace of mind. No debt is better than cheap debt.
Today, January 18, 2025, is my 40th anniversary of having type 1 diabetes. I know that I will not have a long retirement. My goal is to pay off my debt, acquire all the life insurance I can get, so that when I'm gone my wife will be taken care of. I am paying everything I can on my mortgage to get it paid off. According to a spreadsheet I've set up, I have 8 more years. I have $240k left, 3.65% rate. Every year on my raises, I will add an additional $100 to my payment.
Michael, same goes for personal loans, auto loans and student loans, pay them off early, save a ton on interest regardless of rates as long as there are no prepayment penalties!!!
The last 4 years I was being mobbed at work by left leaning individuals and bad apple Visa workers. I was so stressed out, I wanted out of the situation. So I tripled down and paid off my mortgage. Fast-forward to May 2024. I was let go. The Oklahoma based payroll company continued to hire more Visa workers. Such a bad situation. I'm good now, but the taste is bitter and not sweet. What a crap show I got out of. I'm still trying to forgive, but it is hard
We’ve set ourselves up to get a reverse mortgage in a little over a decade. We even plan to impound the taxes and insurance with an offset to avoid that expense. This will allow us to have no housing payment in retirement. We are going this route to save our cash for retirement to travel and we have no kids or heirs, so the bank can have it back once we are gone. Thanks for another good video!
A paid off property leaves you more vulnerable to title thieves and why I will always have a HELOC encumbering my title. I don't have to have a balance or fees but can pull most of my equity.
4 week treasuries pay 4.3%, no state taxation, no risk. Don’t pay off 1.99 interest rate, bank the delta or invest the delta in market at the proverbial 7% (unless you feel market overvalued or new guy will screw it up with tariffs). If it is assumable, it has extra value possibly.
Paying off debt can be a psychological relief, but also letting the bank hold the mortgage with a low rate could also be a psychological relief. You have to think about risk and risk management, which has to do with behavior. Just think if a hurricane or fire wipes out your property, if it’s paid off you’re going to be SUPER stressed because that property is wholly owned by you. While if it’s owned by the bank mostly, you will not be as Stressed because all other things being equal you’d stashed away that cash that you would have used to pay off the property early and have less stress because the bank is holding that mortgage. Your. Still responsible for that mortgage in most cases, but you might be afforded certain privileges like interest free forbearance, tax write offs,etc…
Paid off my mortgage in 12 years instead of 30. Save about $160,000, in interest. I worked in retail management so it is possible to pay it off as long as you do not overspend on items that you really do not need. I only bought coffee once from Star Bucks but never again, you can save a TON of money by not buying the best stuff.
I paid off my house a year ago this February, the long and winding road that was. I had the luxury of buying in 2001 at an average interest rate of less than 3% on a brand-new home with 4 bedrooms. I look at young people's situation today only to see that they are just getting royally screwed royally these days. They would have to leave California to get the deal and the equity I was fortunate to have. Leaving California is what I would do.
paying off your mortgage before age 60 is sensible. also depends on your job security. Professional, scientific, technical services and construction apparently have the highest rates of redundancies.
WHO is PAYING FOR ALL THIS DAMAGE?? th-cam.com/video/zZILsuqcYXM/w-d-xo.html
I'm not sure U-Haul is the ideal place for accurate stats showing which states people are moving to and from.
Especially if you compare housing price trends. I don't see housing prices skyrocketing upward in Florida and a few other top tier places on that U-Haul list.
YOU'RE A GREAT
BS ARTIST 👏👏👏👏👏
I paid mine off 11 yrs ahead and the peace of mind is priceless.
It's great knowing the monthly mortgage is accruing and even building more wealth
As long as you have a mortgage the government can't touch it. As soon as you pay it off it's theirs anytime they want. Not really a goo choice
Doing the same.
I’m 26 and bought a home in cash in a LCOL area. No debt whatsoever
Well yesterday I got demoted at my job, so I came in today and quit on the spot
When you live below your means and stay away from debt, you have freedom and the ability to walk away from any shitty position in life
I did the same!
❤
Good for you. You are totally right, and you have learned this at an early age, I'm impressed.
You will do well in life
I do the same
I paid off my 30 year mortgage in 9.5 years. That was the best feeling of relief I've ever had next to my ex telling me she wasn't pregnant.
Damn!!!😂
😮😂😂😂
😂
You’ll be 58 years old thinking, “man, would’ve been kind of cool to have had a son 😔”
You own your house and your vehicle you've got it made.
Having your own house paid and cleared ALONE is very made!
Yep .
It is a misconception to think you own your house as the government is the owner; stop paying your property taxes and you will find out who the real owner is!!!!! But yes, if it were possible to own your house it would be grand.
The state wanted a portion of my property for a highway expansion and they paid a hefty price for it the state sure seemed to think I owned it because the fat check was made out to me
Definitely in the pay off your mortgage early camp. Just for the peace of mind, that is priceless, it's a different type of wealth that can't be measured in dollars.
I always give Mike a Thumbs Up simply because he is worth listening to.
I’m from the U.K.i paid my mortgage off early back in 2014 age 43. Best thing I ever done from a peace of mind point of view.
We finally paid off our mortgage in our senior years, but property taxes plus insurance are just as substantial, not to mention endless home repairs. Home ownership is a huge unending financial burden with or without the bank taking its cut. Almost envy those 19th century settlers who put up their cabins and didn't have anyone to pay every month for the privilege.
Yea, but atleast you don't have mortgage in the mix, that is a help.
What do you mean almost
Yes, they are substantial. We never truly "own" anything, not even our money. Everything is liquid and moves through us, to other people and entities, eventually. Rent or own, you'll "owe" people and services to insure it and repair it, the latter being something I'll do myself until I simply cannot anymore. There is no perfect solution.
Debt free since age 41, I’m exhausted!
Is this a test? Which is better.. paying house tax & Home Insurance... OR Paying Taxes, Insurance, AND Bank Mortgage?
In Florida I had a house with No mortgage so was able to SELF Insure. Plus no HOA fees.
If one has a mortgage, they are locked in to High insurance rates.
I did much better by having no mortgage because I got to sell at a respectable profit.
The reason to pay off a mortgage is to NOT have debt. Some people like debt, but my philosophy is the best debt is no debt.
I agree. I don’t like debt.
@@mikeshafer debt makes me nervous,I won't have debt....
People think slavery is not anymore in the usa but debt is slavery. So by paying all your debt you become free.
Just pay cash.
I don’t like debt too. I know ppl that to me seem very comfortable to be in debt. I know some of the advantages of debt but still….
Rich man, is a man with "NO DEBT"
I'm agreeing with you.
& No Bills ...
A rich man has absolutely nothing to do with money
@@ariaessa money is like oxygen we act like we don't need it but try doing without if and see how long you last....
Payed off my mortgage long time ago, saving money with no mortgage.....
*paid
I paid off my 30 year mortgage in 11 years in August 2023.. Very glad I did.
Congrats..feels great doesn't it
My wife and I paid off our mortgage 3 years ago and its great! The piece of mind is priceless.
I love the feeling of not owing anybody anything,,,it's called piece of mind,,,priceless.
We paid off our mortgage years ago, and have no debt. So glad we did. Look at the economy now. It's a mess. Best to have no mortgage, and no debt. Continue to save as much as you can. While many took vacations, I applied the funds to the mortgage balance each and every month. A debt is a debt is a debt. A mortgage is a debt. Pay it off.
I live in Australia but it all works the same. Paid my house off in 10 years- that was 15 years ago. Bought a small factory unit 12 months after that - paid that off in 20 months. Been debt-free for more than 10 years and been saving for retirement ever since. Even get to pay cash for cars by saving up a bit. My real estate has increased in value by 400% (we have insane real estate prices here). Retiring at the end of next year at the age of 60 and will sell up, downsize and invest enough to live off the interest and pass a tidy sum off to our 3 kids when the Big Guy upstairs calls “time”. Best part - zero stress when you live debt-free.
Are you prepared to meet HIM when that time comes?
Nice 😂
Zero stress in fascist Australia… 😂 The entire world was watching your country during the mask wearing era !
@@lidieriShould we talk about homeless, gun deaths, safety, economy, the cancel culture capital, Joke presidents, Immigration, drugs and drug deaths, multi nationals, Big pharma, corruption and the general feeling around the world America has become a consistent joke. Sorry was running out of room to do a full list.
@@neolion8150 Everything you’ve mentioned is true. There is a chance that we will start to reverse it on Monday but I don’t see anything positive happening in near future in Australia… And you have to admit that your country and Canada are the absolute worst in protecting freedom of their citizens from the Western world. Yes. China still beats you guys.
I don't think you can put a price on the value of a paid off mortgage. The biggest gain is in your peace of mind.
Free of debt is a good achievement. ..,...
Where I worked we always celebrated someone paying off their mortgage.
They look so happy.
@blackworldtraveler3711 relief 👍
A paid off home is nice, but even better is financial independence. If you achieve FI before the house is paid off then its even sweeter when the house is paid off.
Latter 50's, received a financial gift last year. Paid off condo and credit card this month. Not in a good situation for income, but it's a huge relief not having a $700 a month payment, plus crippling credit card debt.
I know what you mean. I'm happy for you. I'm pretty good because I paid things off too but not sitting well with money coming in. Same situation
Once your mortgage is paid off, paying your other bills is less stressful. No more thinking about seeking a second job or working overtime at your current job. When I paid off my mortgage early 13 years, I paid off all my credit cards & car payments within 2 years. Dept free is a great feeling. 😃 👌
As Dave Ramsey would say, the grass feels different under your feet if it's paid off. Nothing else equals that. Period.
I sleep better knowing our home is free and clear.
Having deed to your house = priceless feeling!
Sure, just try not paying your property tax and see how free and clear you are.
@gumby2241 and if you are a renter you are still paying those taxes... I guarantee you they are calculated into your rent.
Proverbs 22:7 reads, “The borrower becomes slave to the lender.”
We paid off our mortgage several years ago, very happy with that decision. We are staying in our home as long as humanity possible, so we are good 👍🏻 Debt free is really the best way to go if you can, it gives you peace of mind in this crazy upside down world.
10:00 the time when you bought a house definitely matters. The people who have been waiting 4+ years for a crash are now looking at homes that costs much more then what they were looking at in 2020.
I retired at 62 with all three kids done with college debt free for them, they moved out and my home paid off. That was my goal. Also saved a lot in my 401ks, which I rolled over into IRAs. I think my best interest rate was around 4%. We refinanced once to a 15 year mortgage and cut 5 years off of our 30 year with a lower interest rate. we are debt free. My daughter and her fiance bought a house in Indianapolis for $280K much different than home prices here in California, but I would not want to live in Indiana.
I paid my mortgage off in 7 years back in 2008. Ever since then I invested all the money I would have used to pay the mortgage. Now I won my home clear and free and have investments. I'm happy I own my own home in the crazy Northeast where home prices are insane. I'm retired and debt free. I have a nice fat 401K I never have to touch because, what I get in Social Security and Pension is more than enough to meet my expenses with some left over to save. I don't even have to take 4% out per year to live. I'm not eating steak everyday and spanking supermodels but I'm not splitting pills, eating cat food and buying dented cans to scrape by. I life a dignified, fun but frugal life. NOT Cheap frugal.
I'm an independent contractor and work seasonally. I am able to make decent money but it's not always consistent. It's also physical labor. So I like the idea of paying off a mortgage early to give me peace of mind for when I may not be able to get work or in a case where my body may get hurt and I'm not able to work anymore. I've been conflicted about it because so many people tell me I'm better off investing but I almost think the peace of mind and stress relief is worth more than making the most money
paid it off 17 years ago, sleep really well knowing I have zero debt
22 years for me,I'll never sell or move....
So much better having no mortgage payment! 😃🤘
The tedious task comes to a end, finally. 🏠 You'll never be underwater.....
Title theft is a big problem with a paid off house. Once the mortgage/deed of trust satisfaction is recorded, all the criminals know there is no lien on the house. They can file a fraudulent deed against the house. You can counter this by immediately getting a HELOC recorded against the house. Then this HELOC lien will be in first place and make it less attractive to title thieves. Of course, you don't actually want to use the HELOC. You normally need to pay an annual fee on the HELOC if you use it or not.
Recently, in Raleigh, North Carolina, a title thief recorded a fraudulent deed against the $4 million house of a prominent dentist. Look it up. Eventually, the criminal was arrested. However, the dentist/homeowner has to pay a lawyer about $8000 to fix the fraud mess. A $100-$200 annual fee on a HELOC is much cheaper.
How many yrs should you keep that heloc in place for protection? Like for the 30yrs are u suggesting??
Mortgages are a huge rip off regardless of rate because of the amortization schedule. If you only make the regular payment, you are paying mostly interest for at least a decade.
Table is better if you get 15 year mortgage & table for 2 percent int rate mortgage looks a lot better than 7 percent
If you are paying 2 percent int and home prices goes up 7 percent a year
That’s 5 percent income in money that’s not yours & it’s tax free if you sell the house
It depends on the yield curve what makes the most sense. Sometimes the difference between a 15 and a 30 isn't much. May as well take the 30 and just make extra principal payments as if it was a 15... you have the flexibility to stop making extra principal payments if life necessitates it.
Remember that the word Mortgage means " Death Note" gage is debt and mort means death. You will pay untill you die. I have very little savings as a single person but own my 250k, 1700sq ft brick house in north fl and am able to live comfortably on s.s. im 73.
My monthly mortgage is $415 at 2.75% rate. I'm good for now.
That’s really good!!
Put more into it instead of your minimum.
Those ultra low mortgages are the reason homes are so expensive. I used to laugh at realtors on the news telling people that they can afford more house since the rates were so low! It turned out they could afford more mortgage, not more house.
Paying off your mortgage is the smartest thing you can do. You never know what the future may hold but if worst comes to worst you will have a roof over your head. Debt free opens up a whole world of possibilities, retire early, leave a stressful job for entrepreneurial endeavors. Pay cash for kids college or other responsibilities. Due to unforeseen circumstances I had to refinance my home and prolonged my mortgage until I was 65. In the years since with no bills I’ve been playing catch-up savings & investment from years of living month to month. I am healthy so it’s worked out but had just one medical issue hit in my 50s, 60s I’d be in a lot of trouble. I don’t think people need to think of their primary home as an investment. I remember being told having a mortgage benefitted me in tax breaks, etc. All bunk to a good portion of us that aren’t millionaires.
Exactly.....👍👍
FYI, having a paid off house doesn't make you immune to any financial risk. Depending on what happens you might very well have to pull the equity from that paid off house to cover the cost of the emergency.
@ True and at least you have that option. I haven’t stowed away the million 🤣 so if I no longer needed my house but needed the money for long term, God forbid, at least I’d have a safety net. Tell you the truth, I’ve worried about money my entire adult life and I’ll be damned if I’m worrying any more til something slaps me up side the head.
The standard deduction pretty much makes mortgage interest a nothing burger. So few middle class itemize anymore so mortgage interest has ZERO value.
I pay my house off 4 years ago and is the best feeling in the world and peace of mind istead of invest, and tha sense of security give me the push to leave my job of 33 years in the one i was miserable and now i have a better job making more money and my house is pay off thanks god everyday, thats what i tell my friends pay your house.
New Mexico’s net loss is nominal. Moving from Texas in 2021, I can say that Albuquerque in particular works for me. Way less people than the Dallas area that I lived at from 2007 to 2021. I do not miss the traffic and flatness of the area. Sure there are negatives here but that’s called the bad side of town. I love having seasons and mountains that I live by in the foothills. It’s the best open secret and I would not mind the population staying flat
Burque is my hometown. Left 22 years ago. Nothing but crackheads and lawlessness there now. I left Albuquerque just in time.
We worked on paying our house off early so we could be completely debt free. The VA loan was at 2.5%, so we had a good rate but wanted to be debt free. We were planning on paying cash for land and having what we want built. I'm not sure what we are going to do since everything skyrocketed around here from all the outsiders showing up. Most fled because it's cold af here but left us with the price hikes. I'm not paying $175k for .41 acre lot. I wanted at least 5 acres anyway.
Peace of Mind is highly underrated!! The people pushing hanging onto mortgages even when you can pay it off are missing that point.
Yes..payoff your mortgage because the home insurance is a mortgage payment now a days..
I paid off my house early -- my interest rate was 4.25%. Owning free and clear is awesome and took a ton of worry off my plate. You also have to be disciplined to invest for the additional money for the full 15 years (or 30).
Having a debt is like needing to go to work when you don't want to.
if you have a fixed rate mortgage (especially at a low rate), not paying off your mortgage works in your favor with a depreciating currency.
No. It’s the opposite.
@@ArtLysense-m2m Depends if you're investing. Low fixed rate is
Debt free here, mortgage paid, car paid and no cc debt. Such peace of mind! Not a slave to a job I hate either :) I work full time but if I want to find another job, I don't have to worry about "paying my mortgage or car payment". Keep the monthly bills minimal (phone, cable, etc.)!
Nope. You have property taxes and insurance. Nice try though 🤷🏻♂️
@@Scodura1 Glad you live in your parents basement. If you rent an apartment or house, property taxes are rolled into your rent. You may or may not want to insure your contents in a rental. Nice try thought.
Guys like you are just destroying the American economy. No debt? Not wasting hour money on unneeded toys.? Being happy in your work? Congratulations bud, being content should be the American Dream.
I don't know anybody at all that says "gee I wish I still had a mortgage."
I know people with several
There is no price nor substitute, for piece of mind knowing that you at least have a roof over your head if things go south…
My mortgage interest is very low. 2.25% but if I had the money, I would probably just paid it off just for the peace of mind.
Yeah I screwed up. Paid off the house because I learned what I was paying per day in interest. That was in 09 when the market was crashed, I had a cheap payment, should have invested in the market, I'd be a multi millionaire.. But, you just don't know, I took the guaranteed safe route.
I’m wondering if the people who decided to wait for a housing market crash in 2020. I’m wondering if they’ll feel the same way later on?
I pay $150 extra each month. It will be done in 7 years It will pay it off about 20 years early. My interest rate is 3.25%. My mortgage ends the same month I get Social Security.
How is that possible. 150/month is 1800/year. Is your house like 30k?
@@CorporateShill66my thoughts exactly
@@CorporateShill66 He says extra. Which means if he/she pays $1,500 they now pay $1,650 a month.
I found a hard money lender. I went to a house that had sold at the sheriffs auction. The house was now in the redemption period and I paid the $28k to get it out of redemption and paid the previous owner $5k. $6k for a two month loan on $40k. The house I owned was set to close during the holding time. My equity from my other house paid for a new roof, windows, garage doors, two new bathrooms, two new kitchens, hardwood floors throughout. It has 4 bedrooms. It is a rambler walkout with two living rooms and kitchens. Fireplace up and down. It is laid out with the lower level having its own “front door”. It’s not a duplex technically so I don’t pay as an income property. I planned this all out after first seeing the house. I had a hard time getting a $40k mortgage but joined a credit union that was willing to do it. My now roommate leaves the rent in the laundry room, we never cross paths. Being disabled I need the extra income. So close. It came out as a $40k mortgage and everything is new in it except I still need to paint upstairs. My roommates house is all painted and stained. Was a lucky week that Saturday in March 2016 and I knew I had the mentally ability to pull all the finagling off. Had to schedule everything in a six week period from the roof to the floors literally.
that prepayment saves you $60/yr in interest each remaining year of the mortgage. It's not going to pay off your mortgage 20 years early.
Thanks for great information. I agree with you on peace of mind with paying off debt. I don’t know how ppl live with millions of dollars in debt…even if it’s all just numbers.
I'm very close to paying off my mortgage! I can't wait, for me, it's for peace of mind.
Insurance cost required with mortgage make it more sensible to pay off mortgage and self insure. 2% isn’t enough to write off on taxes, much less 1.9 interest.
Pay off mortgage to afford insurance more easily....
I would probably self insure if I lived in a suburb or the city, I live in the forest in the Sierra mountains near Yosemite and I only worry about getting smashed by a giant tree or the house burning down.
Bought my property in 2016 for $154k with a 15 year at 4%. Kept the mortgage while the property was a rental. I made it my home late 2021 and paid the balance in 2022. Its the first property I owned out right. Almost 3 years later, I can say its nice to see my savings grow much faster. Property taxes and homeowners insurance cost me $3400 combined. Paying off the mortgage is a great feeling in my case. I figure it will help with an early retirement in a couple years when I turn 55.
If your house is paid off and something bad happens to it, the insurance money goes to you. If you have a mortgage, the check goes to the bank and getting the cash entails jumping through hoops.
I never looked at my roof over my head as a commodity. I paid my house off and eat my bowl of corn flakes like a teenager without a care in the world while stack 90% of my income every two weeks. I was once that guy who paid a mortgage for 8 years before having enought with licking stamps to send my payments in each month.
Its dumb for me to continue to pay a mortgage while investing and have debt on one hand, and the possibility of losing money in the market. I sleep good at night and im sure i added years to my life for the peace of mind of having my mortgage paid off. There is no price to peace of mind.
The fact that you can save 90% of your income by simply paying off a mortgage means you make a lot of money. So you were going to be fine either way. Most people aren't in that position.
@@TheFirstRealChewy
But he's eating corn flakes.
@TheFirstRealChewy Believe me, there are people born into wealth and they never had to worry about the interest rate on a 30-year mortgage. Luck for me, I was born from a working class lower income family. There is nothing special about me... just discipline from having car notes, credit cards and student loans. Eating out, Starbucks coffee was replaced with home cooked meals, lunch pales and instant coffee with the flavor crystals and all 😆.
Today, I look back on it all and realize, I have a very low tolerance for being in debt, and a very strong lack of trust in those that controls this economy.
Early is relative. I paid off my mortgage in 1982.
I stumbled across your channel but the info that you share has enlightened me so well on so many topics. Please continue to share your valuable insights!
Paying off 2% mortgage may not be a good idea, but at 7% it's a good idea.
It's a great idea, 1 less payment to worry about, never mind it's a person's biggest investment. I've knocked years of the life of my mortgage since we closed in 21.
It depends on their objective. If they are heading into retirement and already have enough for FI then they are just lowering their expenses before the transition. If they are trying to build wealth it's better to invest.
There are people who will say they should always pay off a home first, but that's similar to saying a company should never use a loan or use money from investors to make more money.
Yup. Definitely agree with that. Take your time and invest elsewhere
We bought our house using an SSDI income to get out from ever rising rent and into a VERY manageable mortgage.
@@Francisco-po1cfthis guy is a clown advising paying off mortgage early at 2 percent int
If you have extra cash
A) pay off high int debt
B) contribute to retirement
You can save on taxes putting money into traditional ira
Even if you don’t want to risk money in stock market invest it in short term treasury bills paying over 4 percent a year
(In your ira )
On a 30 year mortgage...if you have been paying 15 to 20 years...do NOT pay off the mortgage. You have already paid almost all the interest!!!! At that point it's free money.
But at that point a mortgage could be paid down to the point where it's no longer worth itemizing and it cannot be deducted from income tax. If someone has 5 years or so left on a mortgage it's quite justifiable to focus on paying it off.
I am in the camp of just pay cash for what you buy. I hate any kind of debt.
Paid my house off 15 years early, the peace of mind is priceless. No property taxes either since I’m a disabled vet so all I have is homeowners insurance on my own. At 43 years old I’m sitting pretty, so I’m investing and saving like crazy to get ready to capitalize on great opportunities that come ahead.
Do you mean homeowners insurance since your mortgage is paid off?
@ yes! Thank you, I was typing fast. Corrected it.
@syrentertainment135 I thought that might have happened! Take care!
I paid my mortgage off within 10 years of buying my home. And that was 20 years ago. The amount of wealth I have accumulated over the last 2 decades without being saddled with mortgage debt is incredible. THAT….is the proof statement beyond all others
I refinanced in 2011 not realizing how mortgages worked and found out that it put me back at 30 years again. I was very angry at myself and started researching how they work. Now I am on a 5 year fast track to pay off my mortgage. No HELOC tricks or anything like that, just paying principal payments. Will be paid off about August of 2026. My original pay off was 2041. Currently paying 2700 a month in additional principal. Have only strayed from that two times so I am doing really good. The savings will be 80,000 in interest. We eat a lot of chicken but the piece of mind will be worth it. Also working on paying off the credit card. About 8 months to go on that. I do have one higher interest loan but to me paying off the mortgage feels more important mentally even though I am breaking the rule of paying off the highest interest first.
I live in Australia and am so grateful I have a fully paid off home. Our interest rates are high and they don’t look at shifting any time soon.
I bought four houses throughout the years and I paid all them off within one year of living there. It felt like a weight lifted off my shoulders.
Pay off everything. Unless you have a crystal ball you never know you may have an issue. My house is paid off thankfully my lodging would be something like 4 k a month with todays rates. That would be half my pay. I hope to retire someday so i been saving as much as possible. Having no debt on cars, house, no debt at all is the way for me!
Never had a mortgage. I live within my means.
Wow, am debt free, but I wish I had learned that lesson earlier. Good for you.
Another good one Michael 🎉
I am 60 and debt-free but have always been. I've been on both sides of the camp. I have a friend who's dead it up to his eyes with properties but leverage money isn't taxed but the freedom of debt-free I believe is the way to be
The things you own, own you. My Dad paid off everything before he retired. He frustrated taxes and insurance increase every year, so much for owning it free and clear. It costs him 10k a year to keep his stuff he paid off 20 years ago, lol...
I’m glad that I never had a mortgage. I was lucky enough to have had enough money to pay in cash.
That house 43 seconds in really needs a pressure washing! I paid bought and renovated cash for my place. Live on half my income, so I invest the rest.
HI MICHAEL GREAT SHOW SO INTERESTING AND INFORMATIVE THANK YOU FOR YOUR VERY HARD WORK CANADA 🇨🇦 PEACE ✌️ ☮️.
It's nice when you reach that Tipping Point
Yes my family doesn this. We put in a certain amount so that we can pay our mortgage in full but also add to the principal.
Someone said East Carolina is gaining momentum.
I went through that dilema and ultimately chose to pay off early and im dam glad we did.
4 months after we paid our home off, I broke my back...just.likenthat income slashed by 50%.
I sold a 1.75% 15 year fixed conventional once. $220K loan had a total of all closing costs $5K
I did. We paid our 15 year loan in approx. 11 years. Happy we did. It gave me peace of mind to have it paid off a couple of years before retiring. Saved the same amount of P&I to increase our emergency fund. Our rate was low, but there’s peace of mind. No debt is better than cheap debt.
I’m going to live like a serf and pay down my mortgage in 3 years. The job market is horrible. The mortgage is like a chain around my neck.
@Agreed. I felt the same before retiring.
I paid off a mortgage 16 years early. That’s why my wife has the Amazon truck in front of our house every other day. No mortgage or credit card debt.
😂
The best debt is no debt. 🤓
Today, January 18, 2025, is my 40th anniversary of having type 1 diabetes. I know that I will not have a long retirement. My goal is to pay off my debt, acquire all the life insurance I can get, so that when I'm gone my wife will be taken care of. I am paying everything I can on my mortgage to get it paid off. According to a spreadsheet I've set up, I have 8 more years. I have $240k left, 3.65% rate. Every year on my raises, I will add an additional $100 to my payment.
Well, take care of yourself. My neighbor had type 1 diabetes. He passed away a few years ago at age 94. Edit: he also outlived his wife by 4 years.
Imagine if your house burns down and the insurance doesnt fully cover it.
Michael, same goes for personal loans, auto loans and student loans, pay them off early, save a ton on interest regardless of rates as long as there are no prepayment penalties!!!
It took me longer to pay off my student loan than it did to pay off my mortgage.
@Arienrhod Yeah it was a slow process paying off my student loan as well!!
The last 4 years I was being mobbed at work by left leaning individuals and bad apple Visa workers. I was so stressed out, I wanted out of the situation. So I tripled down and paid off my mortgage. Fast-forward to May 2024. I was let go. The Oklahoma based payroll company continued to hire more Visa workers. Such a bad situation. I'm good now, but the taste is bitter and not sweet. What a crap show I got out of. I'm still trying to forgive, but it is hard
We’ve set ourselves up to get a reverse mortgage in a little over a decade. We even plan to impound the taxes and insurance with an offset to avoid that expense. This will allow us to have no housing payment in retirement. We are going this route to save our cash for retirement to travel and we have no kids or heirs, so the bank can have it back once we are gone. Thanks for another good video!
Getting ready to pay off my vehicle and gonna start putting that on the principal of my house...
Thank you Michael! I was waiting for this video.
Paid off my mortgage 2 years ago. Now I don't give a shit what the house market or mortgage rates are doing
A paid off property leaves you more vulnerable to title thieves and why I will always have a HELOC encumbering my title. I don't have to have a balance or fees but can pull most of my equity.
Mortgage payments are too damn high!
4 week treasuries pay 4.3%, no state taxation, no risk. Don’t pay off 1.99 interest rate, bank the delta or invest the delta in market at the proverbial 7% (unless you feel market overvalued or new guy will screw it up with tariffs). If it is assumable, it has extra value possibly.
Paying off debt can be a psychological relief, but also letting the bank hold the mortgage with a low rate could also be a psychological relief. You have to think about risk and risk management, which has to do with behavior. Just think if a hurricane or fire wipes out your property, if it’s paid off you’re going to be SUPER stressed because that property is wholly owned by you. While if it’s owned by the bank mostly, you will not be as Stressed because all other things being equal you’d stashed away that cash that you would have used to pay off the property early and have less stress because the bank is holding that mortgage. Your. Still responsible for that mortgage in most cases, but you might be afforded certain privileges like interest free forbearance, tax write offs,etc…
Paid off my mortgage in 12 years instead of 30. Save about $160,000, in interest. I worked in retail management so it is possible to pay it off as long as you do not overspend on items that you really do not need. I only bought coffee once from Star Bucks but never again, you can save a TON of money by not buying the best stuff.
I paid off my house a year ago this February, the long and winding road that was. I had the luxury of buying in 2001 at an average interest rate of less than 3% on a brand-new home with 4 bedrooms. I look at young people's situation today only to see that they are just getting royally screwed royally these days. They would have to leave California to get the deal and the equity I was fortunate to have. Leaving California is what I would do.
My 30 year mortgage will be paid off in 10 years at the rate I am doing it.
paying off your mortgage before age 60 is sensible. also depends on your job security. Professional, scientific, technical services and construction apparently have the highest rates of redundancies.
First: Cancel all insurance policies
That's not possible while carrying a mortgage.
No way.....that would not be smart....
And pay cash for any damages with these storms all over the country? Who’s got that kind of cash?
Pay everything off,put money in a sock.
Mattress "
Can you do a video about Orlando’s housing market? I’m planning a mov and I love the way you describe things 👍🏽