Do you believe in paying off your mortgage? Or using that money to invest in the stock market? Or a hybrid approach?

In this episode we do a big debate on whether paying off your mortgage really is the right thing to do. We get some interesting voicemails from both sides of the debate, as well as some messages from the community!

You'll love how interesting it gets.

We also chat about...

Updates from Gwen and J
Voicemails for and against paying off your mortgage
Gwen and J's personal take
The hybrid approach
Opinions from the community

Enjoy this debate, and please subscribe to us in iTunes if you enjoyed it!

Show notes and links from today's episode

The Military Guide
Rich and Regular
Marriage, Kids and Money
1500 Days
FIREDrill's Facebook group

Key takeaways from our great Debate
1 - Some arguments for paying off your mortgage
The main argument on paying off your mortgage is an emotional one. If you personally feel less stressed and happier knowing you own your home, that's likely the best strategy for you. Here are some other arguments for paying off your mortgage:

It's always good to have one less bill
It gives a significant boost to your FI number
Having a house is good in case of having a financially insecure parent
Stress, freedom and happiness cannot be calculated with numbers
It increases your net worth
It gives a huge boost to your savings rate (once the mortgage is paid off)

2 - Some arguments against paying off your mortgage
Those against paying off your mortgage argue that really it's a numbers game, and that if you do the calculations you're most likely better off not paying your mortgage early. Here are some of the other arguments:

If you have a reliable income (such as an annuity) and your mortgage payments are steady, there is no reason to pay it off early
It's a hedge against inflation
You might want the money around to be able to invest in something unforeseen
Now is the best time to have a mortgage thanks to the super low interest rates
Right now, you'll probably make more money in the stock market
You might not want too much of your net worth tied into real estate

3 - At the end of the day, it's a personal choice
Whether you pay it off or not, at the end of the day it's what helps you sleep best at night. Some of the other responses went for a more hybrid approach. Josh, for example, maxes out both his 401k and IRA, and then all his extra payments go towards the mortgage. Brandon also has a hybrid approach, showing that his priorities are first his employer contributions and then the mortgage. Christopher also recommends always having an emergency fund before deciding to pay off your mortgage - just in case you need the money immediately!
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