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.

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!

[2:53] 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

[8:1] 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

[11:51] 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

[13:36] 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

E150 – Damion Lupo of Qualified Retirement Plan

Damion Lupo is the author of many books but we are going to talk mostly about his book called The QRP book today. Damion has actually appeared on the show before, where he has talked about how he went from being a multi-millionaire to being broke and building his net worth back up again.

Listen »

E126 – QuantmRE with Matthew Sullivan

Matthew Sullivan is the CEO and Founder of QuantmRE, a cryptocurrency startup that supports homeowners by helping them sell a fraction of the equity in their home without taking on more debt. A seasoned entrepreneur, Matthew has a proven track record in real estate innovation through his experiences as Co-Founder of the $50M Secured Real Estate Income Strategies Fund, and as Founder and President of Crowdventure.com, a real estate crowdfunding company.

Listen »

E122- Mike from MikedUpBlog.com

Mike is a 30-something CEO, Blogger, and Forensic Scientist. On his blog, mikedupblog.com, he writes about financial insights for Family & Business, and gives fitness tips for everyone. Mike has a ton of financial pillars for millennials and we’ll be picking his brain!

Listen »

E120- Hoda Mehr from StockCard.io

Hoda Mehr is the co-founder and CEO of StockCard.io. She started Stock Card about a year ago to enable the new generation of stock market investors to make fact-based investment decisions without time-consuming research. She believes the old market wisdom that individual people should not invest in individual stocks. And it’s a thing of the past and she’s trying to equip a new wave of investors with the tools they need to succeed.

Listen »

E118 – Losing a 9-figure Inheritance with Liz

When Liz was 21, she had a good life – a promising legal career, a 9-digit inheritance, and was one of the heirs to her father’s business empire. When she turned 22, however, she lost everything upon coming out to her family. It took a few pity parties, but she eventually picked herself up.

Listen »
About the Podcast
Chain of Wealth

Chain of Wealth

The Chain of Wealth podcast is a biweekly podcast boasting over 350,000 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