She's Talkin' Money Should I Pay Off My Mortgage or Invest?
You have extra money. Should you put it toward your mortgage or invest it?
The answer is very different if your mortgage rate is 3% versus 7%.
In this episode of She’s Talkin’ Money, I’m breaking down how I actually think through this decision with clients — because “always pay off your mortgage” and “never pay it off because you can make more in the market” are both examples of generic financial advice that leave out the most important part: your actual financial situation.
We’re talking about how your mortgage rate changes the conversation, why liquidity matters so much, and what you may be giving up when you send every extra dollar into your house.
I’ll also explain why home equity is not the same thing as cash, why paying down your mortgage does not make your home appreciate faster, and why being mortgage-free is not automatically the strongest financial position.
In this episode, you’ll learn:
why a 3% mortgage and a 7% mortgage require very different decisions
how to think about where your next dollar is working hardest
why liquidity should be part of the mortgage-payoff conversation
the difference between building equity and reducing debt
why paying down your mortgage can create an opportunity cost
when I’m more interested in making additional principal payments
when I’d rather see you invest the extra money
how retirement changes the decision
and why the emotional benefit of being mortgage-free still matters — after you understand the math
You do not have to choose between “always invest” and “always pay off debt.”
The better question is: What job should this next dollar be doing for you?
Being mortgage-free can be a great goal. But the goal is not simply to have no mortgage.
The goal is to build the strongest overall financial position you can.
If you’re ready for personalized, judgment-free financial guidance, learn more about working with Shari. Shari Rash is the founder of GWA Wealth, a virtual advisory firm helping women make confident, values-aligned decisions with their money. Visit GWA Wealth to explore your next step.
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Shari Rash is a financial planner and Investment Adviser Representative of GWA Wealth, a Registered Investment Adviser. This podcast is for educational purposes only and is not personalized investment, tax, or legal advice. Nothing discussed should be considered a recommendation, and listening does not create an advisory relationship. Investing involves risk, including possible loss of principal. Please consult your own financial, tax, or legal professional before making decisions based on your individual circumstances.
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