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, a mortgage is the largest debt they’ll ever carry—and the longest. That 30-year loan can feel like a ball and chain strapped to your future. But what if you could break free early?
Paying off your mortgage is one of the most emotionally satisfying financial moves you can make. But it’s not always the best use of your money. Let’s walk through the key questions and considerations to help you decide what’s right for you.
1. Why Do You Want to Pay Off Your Mortgage?
This is the first question I ask clients. Is it peace of mind? Freedom from debt? A desire to own your home outright before retirement? Or do you just hate seeing so much of your monthly payment go to interest?
If the emotional satisfaction of being debt-free outweighs the potential financial upside of investing that money, then by all means—go for it. But let’s count the cost first.
2. The Numbers: What’s the Trade-Off?
Let’s look at a simple scenario:
- Mortgage: $400,000
- Term: 30 years
- Interest Rate: 5%
- Monthly Payment: ~$2,147
If you make one extra monthly payment each year (divided quarterly), you could pay off the loan about 5 years early and save over $70,000 in interest.
Sounds great, right? It is—especially if you’re in your 50s or approaching retirement.
But if you’re under 50 and still building wealth, here’s a comparison:
- Instead of putting that extra payment toward the mortgage, you invest it in an S&P 500 index ETF averaging 8% return over 20 years.
- Result? You could potentially double or triple that extra cash by retirement.
One strategy I often recommend: split the difference. Apply half toward extra mortgage payments and invest the other half. You’ll build equity faster and grow your long-term wealth.
3. Age Matters—A Lot
- Under 50? Focus more on investing for retirement, especially if your mortgage interest is low.
- Over 50? Reducing or eliminating your mortgage can free up cash flow and give you peace of mind going into retirement.
A mortgage-free retirement is a powerful thing. No payment means more freedom, less pressure on your investments, and lower income needs.
4. Are You Paying Mostly Interest?
Here’s the kicker: in the early years of a 30-year mortgage, most of your payment is going to interest, not principal. In fact, it can take up to 20 years before your payments start significantly chipping away at the balance.
So if you’re planning to move or refinance within the next 5–10 years, paying down extra may not save you much. That’s why it’s important to understand how long you’ll stay in the home.
5. When Paying It Off Makes Sense
- You’re within 10 years of retirement
- Your emergency fund is solid
- You’re maxing out retirement accounts
- You’ve eliminated all other high-interest debt
- You want guaranteed peace of mind—not market returns
When It Might Not Be Wise
- You have high-interest credit card or personal loan debt
- You haven’t built up an emergency fund (3–6 months of expenses)
- You’re not investing enough for retirement
- Your mortgage interest rate is lower than your expected investment return
The Bottom Line
Paying off your mortgage early is a deeply personal decision that blends math with mindset.
It’s about freedom, flexibility, and financial stewardship. For some, it’s the right next step. For others, there’s a smarter way to use that money to build long-term wealth.
If you’re not sure what’s right for you, let’s talk. Together we can look at your full financial picture—goals, timeline, and options—and help you make a decision that leads to peace and prosperity.
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.
I’m Eric Boyum, AAMS®, CKA® with Inspire Advisors.
Investments that Inspire. Advice that Elevates.