Money decisions can feel complicated—but they don’t have to be. I’m here to help you simplify the process, avoid common pitfalls, and stay true to your values.
For many homeowners, the idea of paying off a mortgage early sounds like the ultimate financial milestone. And in many cases—it is! But before you cut that extra check to your lender, let’s hit pause and ask three essential questions. Because the right decision isn’t always obvious, and sometimes, it’s not just about the numbers.
1. What’s Your “Why”?
Before we talk dollars and interest, we need to talk motivation.
- Are you trying to eliminate debt to feel peace of mind?
- Are you hoping to retire soon and reduce your monthly obligations?
- Are you following advice from someone who says “debt is always bad”?
The why matters. Paying off your mortgage early is often a values-based decision, not just a financial one. If becoming debt-free helps you sleep better, that’s a good enough reason—but it needs to align with your broader financial goals.
Quick check: Will this decision help you walk in greater freedom, contentment, and purpose? If yes, you’re on the right track.
2. Could Your Money Work Harder Elsewhere?
Let’s say you have a 30-year mortgage at 4% interest. You’re thinking of putting an extra $1,000 a month toward the principal. That’s a solid move—but what if you invested that same amount?
Historically, the S&P 500 has returned about 7–10% annually over the long run. Over 20 years, that $1,000/month invested could grow to over $500,000—versus saving tens of thousands in interest by paying down the mortgage.
Still can’t decide? Consider a hybrid approach:
- Apply half the extra cash to your mortgage.
- Invest the other half for long-term growth.
Rule of thumb: If you’re under 50 and have time to grow your money, investing might build more wealth over time.
3. What’s Your Retirement Timeline?
As you approach retirement, cash flow becomes king. A mortgage payment might feel manageable now, but will it in 5–10 years when your income is fixed?
- If you’re 50+, paying off your mortgage can reduce risk and bring freedom.
- If you’re younger, consider whether early payoff limits your liquidity or investment potential.
Ask yourself: Will I regret having fewer investable assets, or will I regret carrying debt into retirement?
Final Thoughts
Paying off your mortgage early is a powerful goal—but it’s not always the wisest one for you right now. It all depends on your values, your timeline, and the opportunities your money could pursue elsewhere.
Wherever you are on your financial journey, remember—your money is a tool, not a trophy. It’s meant to reflect your values, fuel your purpose, and honor God in the process.
You don’t have to figure it out alone. I’m here to walk with you—one wise, faith-filled decision at a time.