Suze Orman Says to Pay Off Your Mortgage First

[SergEK9]

This is hilarious - so someone who bought a home CASH for 700,000 back in 05 and their house is worth 385-400K now....would that 300K+ hit be worth it? lol With rates at 3.9% why would you pay it off when you can get 5-6% with practically zero risk? Tying up your cash in your house that on avg grows in value at about 2-3% over the long haul is silly. You can always use your cash in accounts as you see fit when needed - trying getting an equity loan sometime lol good luck

[MrPatorr85]

all hype no substance



[ThisCanHappen]

Paying off your mortgage does NOT always reduce financial risk. In some cases, it can increase your risk or even wipe out your savings for good!

[HQDeezy]

@ThisCanHappen

Obviously if you can't afford to make extra payments towards the principal then you shouldn't. Common sense.

[gradius55]

I guess I’d pay off my mortgage if I had the money.

[jdietz730]

100% of all bank foreclosures have mortgages, they cant take something you own.mine will be paid off in 5 years i just bought it 7 months ago

[flanksteak2]

@jdietz730 Unless you stop paying taxes.

[MortgageMagicSystem]

It's not about the value of the house, it's the value of future earnings. Even if the current property value is less than the mortgage, by paying off the loan you protect your future income from erosion caused by monthly interest payments. Like a stock, you don't lose money until you sell and paying it off is like an insurance policy because it gives protection from future debt.

[FortNikitaBullion]

@MortgageMagicSystem Yes but most of the time it's just the reverse: mortgage interest doesn't keep up with inflation; It will be far less painful to come up with mortgage payments in the future than it is today. Even food and gas prices are getting dirt cheap compared to real inflation rates. In 1964, a silver dollar would have gotten you 3 gallons of gas; today that same silver dollar with $30 worth of silver will get you 7 or so gallons.

[FortNikitaBullion]

@MortgageMagicSystem A better idea would be to get a fixed-rate loan, even if you have to take an extra few percent in interest rates, and then make minimum mortgage payments and use any extra money toward buying gold/silver, especially mid-grade common-date Double Eagles. You will be well ahead of someone who simply pre-pays their mortgage.

[FortNikitaBullion]

Bad advice if you owe more than the house is worth. Why put your money into a hole?

[HQDeezy]

@FortNikitaBullion

Might as well stop making payments then.