Published November 11, 2025
Everyone Wants to be Debt Free...But Here's the Catch
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I talk to a lot of homeowners who dream of being mortgage-free.
And I get it….
There’s something deeply satisfying about imagining that moment — no more payments, no more interest, no more bank statements. Just freedom.
But lately, I’ve had more and more people ask me:
“Should I throw extra money at my mortgage to pay it off faster?”
“Should I throw extra money at my mortgage to pay it off faster?”
It sounds smart.
It feels safe.
But sometimes, it’s not the best financial move…
It feels safe.
But sometimes, it’s not the best financial move…
Ok, hear me out - let’s look at an example…
Say you still owe $200,000 on your home and you have an extra $2,000 a year to put somewhere. You have two choices:
Option 1: Put it toward your mortgage.
At a 6.5% interest rate, that extra payment saves you around $54,000 in interest and pays your home off roughly four years early.
That’s a guaranteed 6.5% return — not bad.
At a 6.5% interest rate, that extra payment saves you around $54,000 in interest and pays your home off roughly four years early.
That’s a guaranteed 6.5% return — not bad.
(Also, if your interest rate is around 4%, you’ll save about $26,000 in total interest and pay off your mortgage roughly three years earlier - potentially not the best decision if you want to truly build wealth...)
Option 2: Invest that same $2,000 each year.
If you invest and earn an average of 7% per year, you’d have around $82,000 after 20 years.
That’s about a $28,000 difference in your favor — but remember, investing carries risk.
If you invest and earn an average of 7% per year, you’d have around $82,000 after 20 years.
That’s about a $28,000 difference in your favor — but remember, investing carries risk.
So which is better?
Well, it depends.
If your goal is peace of mind, paying off your home faster can make sense.
If your goal is long-term growth, investing may be the smarter play.
If your goal is long-term growth, investing may be the smarter play.
When mortgage rates were 3–4%, the math was clear — your money worked harder in the market than it did paying off your home. But at 6.5%, it’s a much closer race.
That’s why it’s so important to look at your season of life…
What gives you the most freedom right now?
For some, it’s reducing debt.
For others, it’s letting their money work.
The truth is, there’s no one-size-fits-all answer.
Financial peace isn’t just about being debt-free — it’s about being strategic.
So before you make your next big move, take a moment to run the numbers, talk with your lender or financial advisor, and make a plan that works for you.
This isn't direct financial advice - just some food for thought to get your wheels turning on what has always been considered the “dream” might not always be the best way to build long-term wealth.
Because the goal isn’t just to own your home outright — it’s to create freedom that lasts long after the last payment is made.
As always, honored to serve and — Obsessively Working for You,
Amy
Amy
