Exactly. You become a millionaire by optimizing. By taking advantage of things like $400 a month in additional income.

I agree. You have to at least consider it.

Two things: Yes, you "consider" it, and how do you like living in CA or NY, with more than 50% of your net worth tied up in an absurdly over-priced home? In places where people are not mortgage-rich and penny-poor, you can become a millionaire with 80 to 90 percent of your wealth being liquid, such that you enjoy life a great deal more.

Congratulations. We plan on paying ours off by April 2025.

Congrats!

👏👏👏

Have a wegmans chocolate cake. We did

Paid mine off last June, 9years early!

You've got this , it will be done in no time.

@@elchavinha14 Don't rush it. Invest more.

I owe $250k with a 2.75% rate- in no rush to pay it off. not stressed about it at all. have maybe $650k in equity, I may write a check and pay it off when I retire. maybe not. I'm sure the lender would love to no longer be holding my note with today's rates. plus they make sure tax and insurance are paid. an extra fee I'm glad to pay.

Same!

@@ashdobbs It takes me about 3 seconds to pay my taxes and insurance. I would rather keep those extra hundreds or thousands of $$'s than to pay my lender to do 3 seconds of work.

You are looking to invest at 53? Wow, good luck.

Well done. Great feeling, isn't it.

Weak mind, work stress should not related to your mortgage

My parent bought multiple homes after 53 not sure why that seems odd to you.

Congratulations. We are planning on having our mortgage paid by April 2025. 30yr paid in 18. I can already see light at the end of the tunnel.

yeah i bet the vast majority of people and even Dave Ramsey viewers just have lifestyle inflation with the extra money they have after paying off a mortgage.

Thanks for exploring both sides of the coin… I like what you said about what gives you peace of mind and how it’s different for different people

Just to clarify on your point, if you have $120k invested and $100k mortgage balance, you don't get to count the $20k towards the spread. Alternatively, if you payed off the mortgage, the payments that you used to have would now add to the $20k, but not the $100k you had set aside for spread math. So bottom line, if your spread adds to the $20k faster than your mortgage payment could (not counting property taxes & insurance) then keep the mortgage. If not, then pay the mortgage. If Ramsey was actually a math nerd, this is what he should've been explaining and then he might've actually convinced some people. Instead, he tries to make $400 a month sound like nothing and blabbers on about surveys and "feelings"

Maybe not likely but if your investments tank or your bank goes under, that money is gone and you still owe on your mortgage. If you pay off your house with your investment liquidity, even if home values plummet (which would only be temporary) the house still has value as a place to live and you dont have to make a payment in case you lose your income. In terms of investment and return its arguable, in terms of human beings that need a place to live and get sick, lose jobs, make mustakes etc, its always better to own a home in full.

@@CarguyloganBut if you invest wisely you’ll have liquidity for any job loss situation.

wtf?

@@SilentSputnik bots

You were not in a recession. Numbers don`t lie...

I did exactly the same thing as you. Best thing that I ever did. Aside from the absence of the monthly burden of mortgage repayments, it has ultimately been very rewarding in a financial context.

Sorry but SERIOUSLY your mind is weak

@@davidbrayshaw3529 Curious, have you checked to verify how much more money you'd have today if you invested and then paid off your home?

What are your property taxes? Dave keeps spewing this trash, thinking it applies to everyone.

Having the ability to pay it off and have that grow feels way better than paying it off and losing that momentum.

my condolences for your loss. to me, life insurance benefits are, at a minimum, the value of a mortgage. this was my idea, as a kid when nice homes were 150k. its still stands true, just get the spouse to split the diff with higher priced mortgages. I say this in response to your spouse passing, due to thats my plan to build property wealth for my family. essentially I'm gonna buy out my moms home. and use her Life insurance to pay for my kids (her grandkids) home. they can then take a small 100k cash out refi as a down payment, while they manage their grandmothers home which will be a rental. Its my silver lining, of me being a trust fund kid and preserving family wealth. the only thing I gotta do is only have 2 kids, so that my home is equity for one child and the rental property is equity for the other child. they can rinse and repeat this each generation. so that only 2 properties are managed. (1 primary resid to one child, 1 rental property to other child). the life insurance pays off the mortgage for one, and the renter pays off the other. JUST DONT EXPECT A RENTER TO PAY IN FULL. idk, its still a work in process in my mind.

bots

Heck yea!!

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

VERY good point ! 👍🏼

Definitely not taking Dave's advice on this one. My "spread" is about $150/month shy of paying my mortgage anyways, and the amount I have invested on top of the spread almost covers the remainder of my monthly bills. If my kids were out of daycare, I literally wouldn't have to worry about losing my job

YEP. Double standard.

The guidance varies with the caller's situation. For someone younger, saving $400 a month over a relatively long time can lead to wealth; it may also be all that is feasible at the time. This caller has strong income, is age 63 and could experience psychological freedom by paying off the mortgage. Paying it off also frees up the monthly payment for investing.

The biggest problem with this "analysis" is that Dave is ignoring the future compounding over the next 12 years of the money this caller is pulling out of his investments to pay off his mortgage.

At 63 saving 400 a month isn’t going to do at lot. No time to grow. At 25 paying off your debt will do everything. It isn’t about the money it is about the logic and what happens after you have no payment. You can change jobs open a business you have freedom.

The caller is 63.

????????????

@@SilentSputnik bots

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

haha

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

Yup, that “argument” really irritates me haha. I get the point he’s trying to make, but he could make it in a much better way

If you have a 2% interest rate mortgage, there is no way in heck your freed up mortgage payments would be more than the money you're making from investing an amount equal to the mortgage balance. I might as well pay off my mortgage and light money on fire every month for amusement, makes just as much sense as Dave's "advice"

​@@Thurgor_SupremeI prefer to actually own my home, because if you don't, the bank can take it from you at any time they wish.

@@BG-bx4ey Any time they wish? LOL, not at all. Especially if you're current on your payments

As a millionaire who did pay off their low interest mortgage early, I can confirm that it was the right decision and it frees up SO MUCH MORE of your income to dial up on investment. Don't just speculate. Listen to people who've actually done it, my friend.

Wow! Congratulations!

Oh well, how many 26 makes over 120k annual? Your example does not reflect reality

92k would buy you a nice porta-potty in my metro area.

@@johndone8045this real person’s actual life does not reflect reality? Why? Because you don’t like it or because somehow you’re able to discern the realities of others?

@@johndone8045who said he was making that much?

You can always get a mortgage, but when you live debt free and understand how that feels, you don’t go back. Love it!

Congrats, you lost out on about $200k

The freedom of no debt is priceless.

@@siva47931 how’s that?

Lol these people with sub 1m net worth splurging 200k on "freedom" while dissing people splurging 100k on cars 😂 pure comedy

Yeah but $400 a month is not life changing😝That's a lot of pizza money

11.4% annual over 25 years A little unfair I went to cash in 2007 And into foreclosed real estate 2010

Very good point.

@@danaconda12 Maybe for Dave! LOL The rest of us would love to have a spare $400 a month. Thats the entire grocery budget for some people.

In this model, you or your significant other could also lose a job and have trouble paying your mortgage. Family member could get sick etc. these models don’t factor in risk. Are you also factoring in inflation and the rise of cost of living across the country? A point the people fail to realize is that the math is always wrong against Dave when trying to decide. To pay off a 3% mortgage or not. The thing that he’s right on is that you just are able to strategize differently when you are debt free and not have to ask Biden and the govt for handouts

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

You said it, brother. His program does not allow for exceptions, and exceptions are everywhere. Notice that Ramsey REALLY DIDN'T tell him to pay it off, because that would have been bad financial advice, but he sure implied it to those who aren't listening that closely.

because he's a simpleton

"Don't almost max out your Roth IRA for free." Dave is such a joke.

That’s because a $400 car payment is a money suck and is eating away at most Americans finances. Is 400 really worth keeping a 30 year mortgage even if you are 60yrs old? Just pay it off, avoid the risk and find another place to grow your money

The point is that a home is an appreciating asset, while a car is not. A home is also not as likely to fall apart either.

If you are 63 and your home isn’t paid for I disagree you should be stressing. 2% is a fine rate for a young man. At 63?

Thousandaire here, and I agree!

$100K/yr pension >>millionaire status For me

Why would you not want to be a millionaire? I understand the part about living debt-free. Regardless of how much total wealth you have. In 2024, $1 million isn’t even that much money.

Lots of broke people without debt though.

@@ojg386 homeless people are in the same boat

Except car loan advice. Never do that

Very true !

A friend did that very same thing, but in early 2020 just before the pandemic hit. He said it was a total blessing because his income took a big hit with the pandemic for months, but he no longer had that mortgage and no worries about being foreclosed on. Great job to you!

Freedom.

@@vjr5261 If only you had invested in the S&P what you paid your house off with...

$140k household income at 63 is not bad? Maybe my standards are too high

@@reese85 What would you say is a normal household income at 63?

@@xander6051 he said household, so I’m assuming more than one income. So let’s divide that $140k by 2, that’s only $70k a piece at 63. Yall think that’s good?

​@reese85 Pretty sure that's right round median income lol. Also he said 'household' and later clarified it's because he gets a pension as well. You're weird bro.

@chaosAOE don’t matter if it’s the median income or not and I don’t think thats the median income for that age group and regardless he if gets a pension or not. It’s still his income and there would be no need to say household vs my income “assuming” it’s more than one person and I’m weird for saying $140k at 63 is kinda low? Again maybe my standards are too high or y’all’s are too low 🤷🏽‍♂️

Life insurance or pay the mortgage in a lump sum with invested funds once you retire

If that was true no one would have an issue buying homes.

wtf?

bots

These fucking bots

Depends where u live and if u can fix stuff

And I would fell more stressed for emptying my account. A paid off house means jack if you get fired and have no money coming in.

@@jimmymcgill6778So true

You are exactly correct. And you would have sacrified the compounded value of the interest that your investment would have earned over those years as well.

Everyone with a paid off home disagrees.

I'd sell that stupid house, invest the payment along with your 500K cash at 6% interest and have over $2,000,000 in 15 years.

Ha, very true. They lost money on reselling those loans

Except when the bank calls the mortgage, because they messed up.

@@patignaczak That never happens on a 30 year fixed.

@@dylanbarrett599 you are not supposed to be on a 30 yr -- only 15 or less.

At 2%, there are no slaves at all.

I don't understand how people don't get this. I just don't.

@@davidbrayshaw3529 Math baby! Same way casinos dupe millions!

bots

AVOID CRYPTO

scammers

Frigging bots...

Yeah I've used Dale also. I gave him a penny and he turned it into $100M. It's been great!

If the gubberment eliminated property taxes, they would raise some other tax. They’ll get money from you somehow.

@@doubles1545 EXAAAACTLY. You don't really own your house 100% SMMFH.

Would you then hire your own police and fire departments and build your own roads and infrastructure?

​@@doubles1545"they" aren't trying to get you. Police departments, fire departments, infrastructure, etc. all cost money.

@@superblump87 Good point. Guess we have no choice but to keep paying, even though ll probably never use their service. Good to know its there guess.

Same!!! We have, technically, 2 1/2 years left (based on balance...original pay-off was Oct., 2031 on a 15 year), but hoping to finish in a year or less!!

Paid mine off in April. Don’t regret it for a second

I cant wait to watch my 200k in the bank make me an extra $10k a year

Me too! One more year !!! 👍🏼 Paying off 10 year note in 5 !!!

They really need to let George go.

@@ziggywalsh5562who is Oscar?

The problem is t that he can’t get along it is that his advice is bad and he can’t do math. Not sure any other host would have told the 86 year old to go to work lol.

True but obviously when you create a program and have a talk show that people listen to, you need to speak to those who are the TYPICAL person. And Dave is not going to sit there and tell this guy something that fundamentally goes against his program that has worked for so many. And I am OK with that! I gave you a thumbs up because I can tell you are NOT a troll. My comment / clarification is for those that comment negatively to every one of Dave's videos!!

If you're bad at saving money and feel you have to spend whatevers in your bank account, sure pay off your house. But otherwise this makes no sense.

It does make sense. Go to a well off party of net worth 1-10 million. 90% paid off homes. The type of person you guys are talking about is a small portion of very rich that go broke every time anything happens. 100m+ net worth use assets to make money but the reality is for 95% of Americans they make money on a home and a index fund.

Make sense isn’t it feels and sounds right to me. Make sense is we looked at the actions of the people that had the outcomes you want and this is what works. If it doesn’t make sense to you that doesn’t matter. lol.

It doesn’t make a ton of sense unless you actually take that money and put it in the bank. Also remember, over the next 12 years you might not get 5%.

@@jimroscovius is your daughter doing the same thing now?

How old were you, when you paid it off?

Yes. Remember to do what rich people do. Because that's how you get rich. Even though their lives are completely different than yours. I mean... at under 3%, almost every rich person I know has a mortgage or three...

@@t185bear "Remember to do what rich people do." Except having and using a credit card (or three). Don't do that. In fact we don't even know if they do that because apparently this large comprehensive study of 10000 millionaires didn't have this question on there.

It does though because wealth is spiritual. You can never have enough when you are greedy.

What? That makes no sense. Of course paying off your home makes you more wealthy. It raises your equity, which counts toward your net worth.

Comment i was going to make if i didnt see it first! 😂

Why would you want to be paying on a mortgage until you're 75 if you could pay it off sooner?

Kind of makes sense because when projecting into the future, you'd want to estimate lower returns to factor in unknown risk. However, my rate is 5.5% and I'm not paying my house off because even if my investment returns just match 5.5%, over time, the amount of interest paid on the mortgage lowers, while the amount made on the investment interest increases. So, the payout verses the income diverge through time. Hopefully, there just isn't some massive economic catastrophe. To this point in time, the investment advisors I use has averaged over 12% per year over the last 25 years after fees are factored.

@@sweetiespoon5150The opportunity cost of paying off a low interest mortgage can easily amount to hundreds of thousands of dollars. That’s why.

@@sweetiespoon5150 they make $140k per year and sounds like they can afford the mortgage. However if they want to stop working, then cutting an expense like the mortgage is worth it to me.

I guess you'll just keep making the banks happy giving your money away to interest if that's your decision!!!

It actually does make a lot of sense to clear it as quickly as possible, both emotionally and mathematically. Compounding interest, even on a decreasing principal works in the lenders favour. The sooner you clear the mortgage, the sooner that you can focus on investments. And the sooner you clear the mortgage, the sooner YOU own the home that you live in.

Do you really invest your money saved by not paying extra on your mortgage? Or do you just spend it?

I guess you'll be making the banks more rich throwing extra money towards interest!!

@@davidbrayshaw3529 Mathematically you lose money if you prioritize paying off 3% debt with money making 8 - 12% compound so you're wrong, but good try bro!

His advice is usually great advice for the people that call in. They are usually backed into corners because they cannot understand or operate on more complex principles. This caller is intelligent and in a great place. I think he CAN operate on a higher level and should do so. Sacrificing his investments to pay off his mortgage is a mistake

I'm going blind completely at 34 to the point that my phone reads and writes for me. I reacted to a medication 4 years ago in one day I went from working to disabled and not capable of filing the paperwork for it. I own my home or I would have been screwed. It takes a single day or a single eye drop to hurt you.

@@rayf6126 The guy's investment won't vanish if he becomes disabled. He will still have the option to pay off at ANY time

The guy is 63 it is crazy to talk about compounding. He need to play this thing off and figure out life. Til tok strike again where you thin compounding is more important then a paid off home even at 63.

The market could tank and he has nothing also. lol young people.

You are not wrong. I am in teh same boat with two kids in college. I built a decent seven figure net worth while carrying mortgages, and I still have one at 2.85. not worried about it in the least. What I make every year in investment returns and income tax savings puts me so far ahead of the mortgage interest, it is actually troubling to me that so many people miss out on this whole "life arbitrage" that can make so much more money vs fixating on being debt free.

This year my investment returns alone could pay off my entire mortgage, and the year is only half over. Or .. I could have only made a few percent on my mortgage by paying it down. No thanks...

What does it matter what the market does in two years when it goes up in the long term? If you're no planning on selling your market related assets anytime soon, your reasoning here doesn't matter

The S&P isn't the only thing to invest in. Money market funds have been returning 5% for over a year now, and they are about as low risk as you get. You can buy literal 10 year treasuries (instead of a fund) that do the same thing, and they will not go down in value if you carry them to term. Though if retirement accounts are fully funded for this year and the next few years, and there is still money left over like this guy has, I would pay down my mortgage as well. Income tax reduction first, then cheap debt.

​@@lepoj Good points and a good question! Let me add a couple of comments. 1. Studies show that these financial ratios forecast long-term stock market performance. So, it was my mistake to not mention beyond the two- or three-year horizon. 2. The caller's mortgage has only a 12-year horizon. So, he should be thinking about money over that 12 years, in addition to thinking longer term. In the near term, if he has mutual fund money that he thinks is going to make 10% or 12% or 15%, etc., then he needs to consider the risk that it won't. Conditional upon the multiple I quoted, that current risk is very high.

@@blanketwodahs6741 Very good points. If you think about money market versus paying of the mortgage, then the spread he is capturing is even smaller. Maybe only 3% per year, if he is lucky.

No, it is not an absolute fact that paying off debt makes you wealthier faster.

I don’t believe he has a 2 % mortgage

Hello, how do you make such amount? I'm a born christian but sometimes I feel so down of myself because of low finance but I still believe in God.

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich

Wow, you guys are discussing about the same thing in my mind what a coincidence. Hahaha .I bought couple of crypto like Shiba Inu, BNB,XRP & ADA.

Sincerely speaking. I will continue to trade and stick to expert Al ice daily signals and guides as long as it works well for me...

Alice Devion has really set the standard for others to follow, we love her here in Canada because she has been really helpful and changed lots of life's

The inflation adjusted interest rate is like -2% (yes negative)

Sucks to be you.

Truth. I sit in traffic to avoid tolls. Why give them more?