The Minority Mindset Show

Should You Pay Off Your House EARLY?

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Apr 22, 2025
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INSIGHT

Mortgages Are Front-Loaded

  • Mortgages are front-loaded, with most early payments going toward interest rather than principal.
  • It often takes about half the loan term before you pay more principal than interest.
INSIGHT

Mortgage Payoff Is Guaranteed Return

  • Paying off your mortgage early yields a guaranteed return equal to your interest rate.
  • Investing offers potentially higher but not guaranteed returns due to market risk.
ADVICE

Align Choices With Goals

  • Match your financial strategies to your goals and risk tolerance.
  • Pay off your mortgage early for peace of mind; invest extra money if you seek higher risk and return.
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