E153 – Paying Down Mortgage vs Investing

Connect with Our Guest

Subscribe to Chain of Wealth

Join 40,515 Monthly Listeners

Subscribe to Chain of Wealth

Join 40,515 Monthly Listeners

Pro Tip: Timestamps below are clickable. Click on the time below in the brackets and the audio will start playing at that part of the show.

Need a financial checkout? Head on over to chainofwealth.com/chat and let’s help you manage your money better! Only $75 for 30 minutes deep dive!

A lot of you have been interested to know more this topic and it’s important for all of you to hear some pros and cons when making your decision between paying down your mortgage or investing the money.

Welcome!

[3:22] There is a decision to be made
●     Cost-benefit analysis is a must
●     Check how much interest you will be paying on your mortgage in the long term
●     Additional payments toward loans will knock a lot of time off on the repayment term; use mortgage calculator to make side-by-side comparison on different terms

[8:30] Why you should invest instead of paying down mortgage
●     You can try using Robinhood app to start in the stock market and can even start with $20
●     The market is doing pretty well recently

[12:20] What’s the total interest like for a $100K on a 30-year repayment term
●     Total interest paid would be around $93K
●     If double payments are made, the loan will be paid off in less than 10 years and the total interest paid would have just been $26K
●     If you can, you should be paying double payments

[14:5] What if I grow the money instead of paying double on mortgage
●     Your $536 monthly repayment for 118 months, would have only paid $45K worth of interest
●     Your $536 monthly repayment for 118 months, if invested, would have grown to $95K
●     With a return rate of at least 8%, the amount earned from investment over the same period of time would be enough to payoff your mortgage in cash

Enjoying Our Podcast?

We have over 150 episodes to listen to! Join over 2,167 daily listeners that pursue financial freedom.

By entering your email, you agree to our Terms of Service and Privacy Policy.

Other Podcasts

E221- Sunny from FamVestor

Fuller Bio Here: http://famvestor.com/bio Sunny Burns is 29 and works Full-Time as a Project Engineer for the Department of Defense. He is happily married with

Listen »

E218- Gary Boomershine

Gary Boomershine founded RealEstateInvestor.com in 2005 out of the need to scale and grow his own real estate investing and home buying business. With a

Listen »
About the Podcast
Chain of Wealth

Chain of Wealth

The Chain of Wealth podcast is a biweekly podcast boasting over 500,000 downloads. We interview inspirational guests about money topics. You can learn more about us here.

Share On
Share on facebook
Share on twitter
Share on linkedin