Don't Payoff Your Mortgage Early

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Manage episode 281201238 series 1082285
By Jesse McFie and Dr. Tom McFie. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

…until you hear this.

There is no question - paying off a mortgage early saves interest. But what will you be losing by paying off your mortgage early? It’s called Lost Opportunity. If you can simply earn 1.4% on the extra mortgage payments required to payoff a mortgage at 3.75% APR over 15 years rather than 30 years, then you can come out ahead of the interest you would save by making those extra payments. Just 1.4%. This return is completely possible with a basic guaranteed financial tool.

Considering all the facts in your situation, it might make sense to payoff a mortgage early, but please don’t make this decision before your hear the reasoning behind managing your money more effectively by NOT making extra payments. This could change the way you think about extra mortgage payments for the rest of your life.

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