A financial planner weighs paying off your mortgage early against investing extra cash. The decision hinges on your mortgage rate, tax deductions, and where you sit on the wealth priority ladder: eliminate destructive debt first, build an emergency fund, then invest before accelerating mortgage payments.
My mortgage here is at 2.75. We have the ability to pay 0.75. Plus I get a tax deduction. So my net cost on the loan is about 2%. Maybe we do it. But I want you to go back to the wealth priority ladder, which is right here. It looks like that. Okay. Wealth priority ladder. And it's in my book, in chapter 12 of my book, want you to make sure that you've got the bottom phases of the wealth Priority Ladder in play. That means that you have no destructive debt, meaning lifestyle debt, credit card debt. You have an emergency fund or peace of mind fund in place. You're investing 20 to 25% of income. If you're doing all those things, then we can start to look at paying the loan off.
