Paying Off Your Mortgage Early is a $100K Mistake (Here's Why)

Paying off your mortgage early sounds smart. Dave Ramsey says do it. Your parents say do it. Everyone says do it. But if you have a 3% mortgage and you're paying it off early while the stock market returns 8-10%, you're losing $100,000+ over 30 years. In this short video (under 2 minutes), I break down the math that financial advisors don't want you to know: Why your "good debt" mortgage is actually MAKING you money—and why paying it off early is one of the biggest wealth-destroying mistakes you can make. ⏱️ TIMESTAMPS: 0:00 - The Mortgage Payoff Myth 0:25 - Good Debt vs Bad Debt (The Math) 0:50 - Opportunity Cost Explained 1:20 - When Paying Off DOES Make Sense 1:45 - The Smart Money Decision 💰 THE BRUTAL MATH: If you have a $300,000 mortgage at 3% interest and you pay an extra $500/month to "pay it off early": → You'll pay off the mortgage 11 years earlier → You'll save ~$65,000 in interest (sounds great!) BUT: → That same $500/month invested at 8% for 30 years = $745,000 → Minus the $65K you "saved" = You just lost $680,000 That "smart" decision to pay off your mortgage early cost you nearly $700K in wealth. 🎯 THE KEY CONCEPT: OPPORTUNITY COST Every dollar you throw at your 3% mortgage is a dollar NOT growing at 8-10% in the market. The spread: 5-7% annual difference = $100K-$700K over time depending on your mortgage size. 🚨 WHEN YOU SHOULD PAY OFF EARLY: 1. High-interest mortgage (above 6-7%) 2. You're already maxing retirement accounts 3. You're nearing retirement and want security 4. It helps you sleep better at night (peace of mind has value) But if you have a 2-4% mortgage and you're NOT maxing your 401K/IRA? You're doing it backwards. 💡 WHAT DAVE RAMSEY GETS WRONG: Dave Ramsey built an empire telling people to be "debt-free." Great for credit cards (18% APR). TERRIBLE advice for 3% mortgages. He ignores opportunity cost. He ignores the math. He sells peace of mind over wealth building. Rich people use low-interest debt as a tool. Poor people think all debt is evil. 📊 REAL EXAMPLE: Person A: Pays extra $1,000/month on 3% mortgage for 15 years Person B: Invests $1,000/month at 8% return for 15 years After 15 years: Person A: House paid off, $0 in investments Person B: $340K in investments, mortgage still manageable Who's wealthier? Person B by $340K. 💬 HONEST QUESTION: Are you paying off your mortgage early? Why or why not? Comment below. No judgment—genuinely curious about your reasoning. I respond to every comment. 👍 LIKE if this changed how you think about your mortgage 📌 SUBSCRIBE for money truths that actually build wealth (not just feel good) The "smart" money advice everyone gives you? It's keeping you poor. #MortgagePayoff #PersonalFinance #DebtStrategy #OpportunityCost #GoodDebt #FinancialIndependence #WealthBuilding #MoneyMyths #SmartInvesting #FinancialEducation mortgage payoff, should you pay off mortgage early, good debt vs bad debt, opportunity cost explained, mortgage vs investing, dave ramsey mortgage advice, 3 percent mortgage, early mortgage payoff calculator, is paying off mortgage smart, mortgage investment strategy, personal finance tips, wealth building strategies, financial independence, smart debt management, mortgage interest rate