I Paid Off My 2.875% Mortgage…Dave Ramsey Was Right

A video on YouTube. In Business & Money, a Krater category.

Summary by Krater

Graham Stephan discusses whether it is smart to pay off low-interest rate mortgages early, concluding that while math suggests investing the difference yields higher returns, the psychological peace of mind and reduced mental burden make paying off debt worthwhile for some people.

From the video

Answers: Should you pay off your low interest rate mortgage early?

Mortgage payoff vs investing
Credit score optimization
Real estate investing strategies
Life insurance comparison

What it concludes

Paying off a low-interest mortgage early makes sense if you value mental peace of mind and reducing mental burden over mathematical stock market returns.
Households accelerating mortgage payments instead of contributing to tax-deferred accounts lose between 11 and 17 cents on every dollar due to missed tax advantages and investment returns.
Clearing separate debt accounts produces bigger gains in cognition and anxiety reduction than just shrinking the total balance.
Cash on hand is a better predictor of life satisfaction than income, investments, or net worth.

Rate it, review it and add it to your lists in Krater.

Titles and thumbnails from YouTube. Krater isn't affiliated with, endorsed by or sponsored by YouTube or Google.