Short excerpt from a YouTube video warning against paying off a mortgage too quickly. The speaker argues that accelerating payments can trap cash in the property, reduce liquidity, and effectively give the bank more money than required—achieving only reduced interest paid but at the cost of flexibility.
Problem with paying off the mortgage so quickly is that you're basically giving the bank more money than they're asking for. And they're going, hey, thanks a lot. We don't need to go find a new borrower because you're giving us more money than we're asking for. You're trapping all that money into the property, and you're really only achieving one objective. You're going to pay less interest, you're going to pay for less time, but all of your money is now flowing away and it's trapped inside the property, so.
