Is Paying Off Your Mortgage Stupid?

Ola is with us Kohl's in Michigan take all welcome to Dave Ramsey show hey Dave thank you takes my call sure man how can I help I just want to get your you thought I'm something my wife and I just started FPU back in January we're doing it really intense right now Estelle baby said to we should be all paid off in October for a one-year anniversary great are we can do a lot of research kind of a game plan so we can like hit the ground running and get out of debt our thought between her and I we were thinking we should in the area we're living in right now we want to buy our first home save up for our first home that the intent paying that home off early and then turning into a rental property I'm just trying to get your thoughts on that I've I've had resistance from friends of mine that's hold this idea to and they said paying up your mortgage rate is stupid you know there's much better investments we made I'm pretty confident in that I've been learning from listening to you I just want to get your thoughts on that that game plan that we're trying to formulate for him get out of debt if broke people are making fun of your financial plan it means you're on track okay if fat people are making fun of your diet it means you're on track and that's that's what you're talking about here so who gives a crap what broke people think about paying off your mortgage they're ridiculous I own I own several hundred million dollars in real estate and I pay cash for every bit of it okay now would I do your deal or what I pay off the house yes I'd get the house paid off then the second step is where you may have a problem because I don't want you to go back into debt once you've done that in order to get a rental because let's say you pay this house off and then you save up a down payment and buy another house and then you have a mortgage on your personal home but you have a paid for rental if you had sold the paid for rental you probably could have paid cash for the personal home so it in essence is if you borrowed on your personal home to buy a rental in that scenario so if you can save up enough to cash for the new house and keep the paid for rental game on but once you get that sucker paid off we're going to sell it and roll it into the next house unless you can pay cash for the next house because the number one thing we found number one and number two things we found in the millionaire study and I found this long before the millionaire study was done the study we did for Chris Hogan's everyday Millionaire book our MC research team airtight research found that the two primary ways that people became millionaires was their 401k in the or I at Roth IRAs and they're paid for house it wasn't borrowing on your home to buy rental real estate that was not one of the ones that get wasn't that was not even in the top twenty reasons that people became millionaires and so this idea that borrowing me think about it if you had a paid for rental right now and a house payment versus a house that you lived in that was just paid for in the middle of all this kovat garbage how much differently you'd feel 100% debt-free with a pile of cash right now looks pretty dadgum good

Channel: The Ramsey Show - Highlights

Views: 88,767

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, Is Paying Off Your Mortgage Stupid?, debt, mortgage, money, retirement, personal finance, investing, pay off mortgage, pay off mortgage early, debt free, paying off mortgage, pay off mortgage or invest

Id: CdMDIBwtO8Q

Length: 3min 25sec (205 seconds)

Published: Thu May 07 2020