The Psychological Benefits of a Paid Off House 😌

What would you add to this list of psychological benefits of a paid off house?

I paid my mortgage off and now i give a lot more to charity. I remember going to bed hungry when I was a kid. So now I donate a lot to food banks. I feel good knowing there are people who wont be hungry that night because of me. Its a great feeling

Yup, all true! We're in our late 30's. Paid off the condo Oct 2022. Life has been so much less stressful now with all the layoffs and stuff going on in the world. It's so much easier to concentrate on saving and investing too now that our monthly expenses are so low.

Correct for me, Paid an extra $4,000 today, getting pretty close to being done now. My parents and three older siblings have paid there's off. My turn now.

Timely once again - made another principal payment about an hour ago. Down to $162,461. Hoping to have it paid off by Dec 31, 2023. Thanks for your channel and content! Cheers!

You have hit almost all my psychological benefit: less stress, financial flexibility, and debt avoidance. Another factor that is important to me is that I can increase my contribution to my retirement account with minimum financial impact due to being mortgage free.

Its that last payment you know you can't make until the morning to send that wire through your bank. Its like feeling like a child who stays up late to open the Christmas presents but this is even better because its the last mortgage payment of a house that is now worth many times it was worth than when you bought it. Yes, its the anticipation to celebrate something special and has huge positive implications on your future and its life changing.

Thank you. Aiming to pay off a 30 year fixed in just about 14 years. I was 11 years in when I began to accelerate (make extra) payments. At 52YO (now)— this is more reasonable than carrying it to full term and paying off at 70YO.

After becoming debt-free by paying off the mortgage, the level of "give a care" (we'll call it) about certain things goes way down.

So motivational.... keep up the good work.... started at 420k mortgage when I started watching you, now our family is down to 339k... will keep watching for more motivation.... thank you once again.

Thank you! Very helpful overview 😊

Great video, Andy. I can definitely relate to this. My mood has went down several notches since having a paid off home.

Its been over 10 years since I paid off my house. Looking at those old mortgage coupons took me back to the feelings of feeling controlled by the matrix. It felt hopless and I dont even like remember those mortgage years at all.

Great video, you should post more content around this topic.

Your collab with the Money Guys brought me to your channel. It's so great having people like them and yourself out there to keep even the financially comfortable honest and looking at different perspectives. Great job!!

Paid off during a few years during pandemic when it seemed like there were a lot of financial unknowns. But a zero mortgage was one known thing and the feeling of freedom is amazing. I even snapped a pic of our mortgage balance at $14, just for fun.

Can relate to the psychological benefits of a paid off mortgage. We were mortgage-free from 2016-2021. Had a paid off condo in suburban Seattle with low HOAs and property taxes. But needed a car for everything. We were uninspired by the area. So we sold the paid off suburban condo and bought a larger one Seattle proper on 3 bus lines, close to downtown, with shops, restaurants and grocery stores within walking distance. It’s much better for the city life and we hardly ever drive, but now we have to do the whole mortgage payoff thing all over again.

I'm a new subscriber and going through all your videos :) This is such a hot topic. I fall in the category that finances are math and if you let emotion creep in it causes you to make moves that go against the math. Math says my 2.25% mortgage is better letting it ride. I've done the math and it's 100% correct, no question about it. And, with a MM fund paying 5%+ it's a no-brainer. The math works IF you actually invest the money you intend to pay down your mortgage. For us we have! Conversely, for us we have pensions that will provide ample income during retirement. It allows us to be full risk on with our investments today and in to retirement, and do so without concern! One thing I don't get and really haven't been give an answer that I can say, "ok, I get that". If having a paid off mortgage gives you "peace of mind", how doesn't having the money invested to pay off the house do the same? We know the math works and we know if you invest over the 30-year period you will have significantly more investable assets. Why not trust yourself to follow the math? This year alone we've been able to invest $60k so far and that our portfolio is up over 30%. Had I paid down my mortgage I would have gained 2.25%. My payment is so small, $1695, I don't worry about having the money to pay it. I don't worry because I know I have 5x growing and I can pay it off anytime.

Add to that you can buy a vacation house, and I paid that off early too, August 2023 after 47 months of buckling down. So both houses are paid for. Now the first house can eventually be sold and turned into cash when I retire to the vacation house...better than flushing a bunch of money into a black hole know as a 401k

I own 35 houses with no mortgages. I still have a mortgage on the house I live in but plan on paying more per month. Make sure your mortgage doesn’t have a penalty clause for paying the mortgage off early. This usually only happens if you refinance, as far as I know. The bank or mortgage company wants to make as much money in interest payments as they can. A lot of people don’t think to ask because they don’t think about making more money in the future. I use my house as a write off currently. It works out as a good deduction for me right now and my rate is 2.2%. If it were higher, I might look at it differently. I would compare the taxes with and without. I trust my accounts but we all make mistakes. My dad always told me,”If you’re not making mistakes, you probably aren’t doing anything.” I agree.