The Jesse Mecham Show

I Regret Paying Off My Mortgage

Mar 6, 2025

At 25, the host aspired to own a paid-off home by 30, believing it would offer security and freedom. However, achieving this goal led to unexpected regrets, as he realized the mortgage was just another bill. He discusses the surprising lack of satisfaction from being mortgage-free and suggests that investing those payments could have yielded better returns. The conversation emphasizes the emotional versus mathematical aspects of financial decisions, highlighting the importance of reflecting on both before committing to big goals.

06:57

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Quick takeaways

Owning a home outright may not provide the expected emotional security, as it often feels similar to having a mortgage.

Considering the financial implications, keeping a low-interest mortgage could allow for better investment opportunities and higher returns.

Deep dives

Understanding the Emotional Aspect of Paying Off a Mortgage

Paying off a mortgage is often associated with a significant emotional weight, as many believe it provides a sense of security and freedom. However, the speaker reflects on their experiences of paying off two homes and suggests that the emotional payoff may not be as profound as expected. They emphasize that owning a home free and clear feels quite similar to having a regular mortgage, highlighting that for them, it ultimately became just another monthly expense. This realization challenges the common belief that paying off a mortgage fundamentally changes one's financial experience, indicating that the emotional attachment to this achievement may not match the practical reality.

Reflections on Paying Off Mortgages and Financial Regrets

2min

The Emotional and Mathematical Balance of Mortgage Payoff

5min

When Jesse was 25, he wrote down a goal on a notecard: to live in a paid-off house by the time he was 30. He thought that owning his house free and clear would make things feel different, give him a sense of security and freedom. At the end of the day, though, the mortgage really wasn't that big of a deal -- it was just another bill to pay. There was less satisfaction to owning his home outright than he thought there would be, and some regret when he realzied he could have invested the extra mortgage payments somewhere else and made far more return.

You may not have the same outlook on home ownership as Jesse, and that's ok! Jesse encourages you to map out not only the mathematical pros and cons of big financial goals like paying off a mortgage early, but also consider the emotional impact of the decision. Also, leave yourself some space to change your mind in the future, like Jesse did about paying off mortgages early. Personal finance is always a mixture of math and emotions, and where you fall on the spectrum is, well, personal!

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