I’m about to pay off my house and couldn’t be more excited! Just pay off that mortgage and watch your money grow after that 💴

This guy has a household income twice of what he owes on his mortgage. He can't reduced expenses and live on 100k for a year to get this mortgage gone AND invest his savings? I'd love to have some of the problems these people have.

When you watch Enough Ramsey and know the answer before the vid starts but still watch it any way..,

My #1 priority nowadays is to completely pay off my mortgage. The peace of mind that would bring is priceless.

Love George as a host, miss Dave, but George is the next best thing!

I like George. You can tell he is very smart and has a wicked sense of humor.

Another problem with his buddies' formula is they're making the huge assumption that his investments are going to double in the next 7 years. They're also making the assumption that he will not experience any sort of income loss or tragedy. Those are assumptions, not guarantees. The only thing that is guaranteed is that he'll be paying the bank 2.5% a year until he gets the mortgage out of his life.

Compound interest works better over time not paying off the house early has a fixed return which historically is low. And the daughter not going to "college" most likely is a good thing.

I think it depends on your situation, I dont like have a mortgage hanging over my head.

You always make a nice video 😊 but I’m really tired of future predictions… it drives me crazy. I think crypto investment is better than stocks. Though I failed sometimes ago when I tried trading myself but Mrs Pauline Bernice helps me now

George is really starting to come into his own as a host. It's good to see, really.

I’ve got 23k left on my mortgage, personally I’m paying that baby down to zero asap. I care not a jot about leveraging and market returns. This could all go south very quickly. Having no debt suits me way better than the constant payment to the mortgage company. Also, I’m grateful to them for lending me their money to buy my home, so it’s a debt I agreed to pay way back. It should come as no surprise that we have to pay it back. Anyway, plenty of people will argue against me, not bothered at all. I like seeing my debt reducing to near zero in 12 months. I’ll put my $1000 a month into my S&P non sexy index fund and forget about it. Compound interest yeah, I know, time, face, not bothered. Oh and for the record I’ve only just learnt to spell bollox upside down in a calculator, so my financial planning is particularly curious to me. You people better not follow me. Sorry to go on…and breathe, no credit card debt, no car payments, minimal mortgage…..thanks Dave. Probs die tomorrow. Not bothered either way.

It all depends on your interest rate. If below 5%, I would invest. Especially if you are young.

Honestly I would even dip into emergency fund and 100% pay it off. Build up the emergency fund again (at 200k income that will take literally 1 month) then begin putting what he was paying on his house (minus the 400 or so he should be saving for property taxes) and invest that. Then he 100% debt free and can start saving for whatever ventures hes interested in.

Simple answer. Do not pay off the mortgage. Invest the money in an index fund. Relax and enjoy the gains over the next decade.

The heck kinda math am I hearing on this call? Guy says he’s got 95k principal outstanding with a rate of 2.5%. He calculates that paying it off in 7 years will mean that he’ll have to pay 50k in interest? Then George asks how much his mortgage pmt is and guy says 1952 (around 2k). So George then says the guy is paying 24k mortgage pmt that’s not counting interest. What kinda mortgage payment is principal and escrow only? I want in on this deal. Too bad Dave’s not there, he’d calculate that the guy’s 200K household income after tax would be $199.5k.

The payoff on the house is guaranteed. The market returns are not.

George is doing a great job! By the way, KZfaq won't let me Like the video for some reason.

To everyone who says it’s better to invest than pay off the mortgage: you can’t compare the 2.5% mortgage interest to the ~8% returns on the market. This ‘math’ assumes one situation where there is a paid off mortgage, and the other where investments have been compounding for 7 years. So, you’re comparing an investor to a non-investor...effectively stacking the deck against the first situation. When someone pays off their mortgage, they would then invest that mortgage payment, thereby creating an asset that would grow, much like the asset in the second situation (George hinted at this in the video). Using numbers from the video, if the caller keeps the $85k invested for 7 years, at about 8% return, that will turn into $145,675. But if he pays off the mortgage and frees up the $1,952/mo payment, investing that payment amount for 7 years, at the same 8% return), yields $209,007. So, by all accounts, he should pay off the mortgage now, and then invest the 'would be' payment for a higher net worth at the end of the 7 years. Additionally, around 67 or so videos on the Ramsey channel have people calling in talking about their millionaire net worth. About 40 or so (from what I’ve roughly seen), the folks have not used leverage, and their net worth is around $2.5M - $3M to about $5M. So, without leverage, the range is around $4M, +/- $1M. Is there any statistical data for the leveraged group of folks and their net worth? For me, personally, they need to be hitting AT LEAST $6M or $7M to make the leverage worth it. If I can hit ~$4M without leverage, I'm not going to take on the risk of debt, choke my cash flow, and have few financial opportunities for my family if the payoff isn't significantly worth it :) Everything looks good on paper with incomplete math, but is there actual evidence and statistical validation that leverage overall performs better than non-leverage? Just some food thought :D

People we are being conned with mortgages. If you get a mortgage and at the end of 30 years you have paid 300,000 dollars on a 100,000 loan you have paid 300% interest not 3 or 5 % interest. Yea at the end of the loan you have paid for 3 houses 1 for you and 2 for the bank.

Don’t risk something you have for something you don’t need. If everything else is good (retirement savings look good etc), then pay off the house asap, and live stress free. However, if you still need to grow your wealth for retirement, then there is an argument for maintaining a small level of risk by keeping the mortgage and using the money to invest instead.

i'd let that fixed 2% loan run as Looong as possible . we aren't gonna see those low interest rates anymore very likely

When you pay the home off youre guaranteed the return of the mortgage interest.

based on what i heard at the beginning of the call, i thought all he had was the 85k in savings. But now hearing at the end he has other assets and is so close to being a millionaire (in addition to his large take home income), there is no point for him to wait 7 years to pay off the mortgage, just pay everything off now.

Why pay off a fixed mortgage of 2% when fixed rates are becoming harder to find. Yes he will over pay for the house factoring in interes,t but with rising interest rates and inflation, I think it would be foolish to pay this loan off with money that could yield a better return elsewhere. By paying off the loan he would only be saving 2%. If he could yield 2.1% ROI anywhere else, it would be more profitable.

This math is way better! Thanks! Not paying off the home makes zero sense to me!

Rich people problems. Should I be a millionaire now, or should I be one later...

The friends are correct. Ramsey's advice works to get out of debt for a large portion of the public. BUT if you are above average intelligence investing is the right choice...vast majority of the time...

Bro. Invest the money conservatively.. if you have a 2.5% interest rate you would make a killin. I mean AT&T pays an 8% dividend.

His friends are absolutely right, especially with a $200K salary and $95K of debt. Are you kidding me?! 😂However, if it allows you to sleep better at night by paying down that low interest mortgage debt, go for it. Just do it knowing you’re most likely sacrificing wealth to do it.

If you had that extras right now, then sure. But the value of future money is less. The value of that payment in 7 years is 1,616.92

At this point of the mortgage his payment has minimal interest in the payment.

"Not a payment in the world" - except for property taxes, homeowner's insurance, health insurance, utilities, car insurance... If you're looking for a zero-risk life, you're never going to find it.

I don’t understand the obsession with paying off 2.5% ultra low interest and very safe mortgage debt. The bank is only one of the 3 mortgages you have on your property and the other two will never be paid off… the state and the insurance company. You’re never “debt free”. It’s a cash flow equation and a matter of the most cost-effective use of capital. As long as you’re smart enough and disciplined enough to manage your finances properly.

I like Daves teammates but I feel like they definitely hold back more than Dave does.

A lot of investors are piling up cash at the moment waiting to see how the situation in Ukraine is going to play out and to see if the idiots in Washington can get the economy under control. At this point in time, I think it is a personal choice - would you rather have a paid off house and no savings or keep making payments with that $200k salary and keep piling cash up. Personally, I'd opt for the second option, at least for six months or so and see how things are going.

This dude is a rockstar and he doesn’t even know it 😂

You can borrow money at 3-5% on mortgage. And you can make more than that in stock market over time. So…. Math answer is obvious

But with his income, he can do both.

buy the Market, I love this pay debt off first then pile it up in the markets. No one does that after the fact. 200000 a year, are you kidding me anyway, either way he does what he does with money he still wins. ALso he is talking about paying it off by this year, so why even ask if the timetable is only a year.

You should invest more money. Don't prepay the cheapest mortgages in history.

At this rate of inflation, In 7 years, a million won’t be worth that much.

200 k a year only debt payment is house $1,900. Where in god’s green earth is your money going????

He started with this 85K can double in 7 years. Well if he believes that. He must believe the 750K in retirement will as well.

Good luck getting a new mortgage on your house when you just lost your job and are now strapped for liquid assets.

This advice of paying mortgage faster first and then investing ur normal mortgage amount in the market later in life is borderline idiotic. The way money is made in the market and has almost all too do with the amount of time in the market and not so much how much money you have to invest. This is very easily understood by looking at the formula of compound interest where time is the only variable tht is exponential therefore the more time u give even a smaller amount of money to grow, the larger Tht snowball gets as time passes compared to investing large chunks of money when ur time horizon is much smaller. Now if ur in a situation where your household income is not reliable and or in a field of work that is high sensitive to economical event or other international or national event then yes perhaps in this case u can prioritize paying mortgage but if ur in tech or trades or other field of work which isn't really affected to much by external events, it's is idiotic to pay ur house off earlier.

This guy is trolling and flexing. Waste of my time

his retirement SHOULD be worth at least $1.5M in 7 years if it follows expected returns.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

PAY OFF HOME. TRUE OWNERSHIP.

If you had a paid off house, would you take a loan to put it in the stock market? Probably no, there's your answer....pay it off.

At 25 years old, you can debate on that. At 50 years old, you don't wanna have a mortgage for another 7 years. It's too late to really take advantage of the mortgage extension strategy at that age. Just enjoy being debt free before retiring instead of risking delaying your retirement age. So I would pay it off.

What kind of math is George using. If he pays the minimum. It will only be 102k. And if he invest 80k. In 8 years, that will be 160k. So it's better to invest it.

He'll more than likely have net worth of 2 million + at 60, he's fine.

I would pay off the house. He would make more over 7 years with an 8% return, if he could invest $1952 a month (assuming that taxes aren't the majority of the payment). Plus, he would still have an emergency fund of 10k left.

If this was 2009 at the start of Obama's Depression, investing at the bottom may have made sense. Now with the Biden Depression coming soon, it may be best to pay off the house.

Isn't it amazin how people can't read 6 simple steps in order. As George Carlin said "Think of how stupid the average person is and realize that half of them are stupider than that!"

What happen to Anthony

This question is asked everyday on this show??? are people dumb??

All these fools paying off their houses with 8% inflation. Invest. I made way more money that way. Most people will.

George slipping in his own house payoff success. I see you. 👀