I Paid Off My 2.875% Mortgage…Dave Ramsey Was Right（原声文稿）

have ever said, but I'll be honest, after years of telling people make more money instead, I'm starting to think that maybe I was wrong.

the stock market and below a certain point, It's pretty much like getting free money, but recently I did the unthinkable mortgages that I never thought I would do and as soon as they were gone was possible before and apparently I am not alone rate mortgage and believe it or not from almost 4 million views and In 1500 replies, almost nobody said yes.

debt whatsoever, watch this video before deciding what to do with it.

debt-free that no one puts into a calculator.

never going to view money the same way again.

Genius for sponsoring this video, but more on that later.

bad, that credit cards were a trap, loans were for people who couldn't buy something outright in cash, you shouldn't be buying it.

That was basically my entire financial education before turning 18. So I never had a credit card. I never had payments on anything.

account, and I thought I was doing everything perfectly. That was until I turned 21 years old.

real estate, because back then it was like 2011, and homes were selling really cheap.

was, oh great, if I have $100,000, I could either buy one house outright in cash, or I could use that as a down payment to buy three properties.

And if those properties make a 15% return, and my mortgage is five percent.

Ooh, that's gonna be easy. I'll be rich.

I thought that I would be the perfect borrower because I never needed credit. I never needed a payment.

I was just paying everything outright in cash and I thought they'd love me.

So I went and applied and I'll never forget just instantly denied.

It wasn't because of my tax returns or I couldn't afford it.

because I didn't have any credit history whatsoever.

that my entire philosophy flipped, that credit and debt weren't to be avoided. It was just a tool to be used just like anything else.

to your advantage, that tool could eventually make you millions of dollars.

which I wound up doing, I could have purchased have been worth about eight times more than what I spent.

Like when it comes to debt, the only thing that really matters is just the spread.

that I earn for money that was never mine to begin with.

And once I realized this, my entire life changed.

years opening up as many credit cards as I possibly could.

I found every trick in the book to boost my credit score as quickly as possible.

And pretty soon after that, banks started giving me mortgages.

in West Los Angeles, and I locked in 30 years at 3.375%.

I then bought a duplex a few miles away from that with a 3.5% interest rate.

I bought another duplex after that for 3.6%.

sense why anyone would ever get rid of that let's just say I bought a $600,000 duplex with 20% down.

property made a net 8% return from rents.

That meant that free, and then if that property goes up in value 5%, original $120,000 investment, which works set to a 25% return.

if the property goes up in value, I make money. If the property cash flows, I make money.

tied up in a deal, the less money I have left over to buy something else to make even more money with someone else's money.

access to really cheat money from the banks because I had a good credit score.

because the mortgages were fixed for 30 years.

eating away at the debt because if my interest rate was 3%, each other out and I was basically just getting free money.

Hey, Graham, should I pay off my 3.5% mortgage early? My answer is always absolutely not. Do not pay off that mortgage early.

That is the cheapest money you're ever gonna have access to in your entire life.

S&P 500 and over the long term, over the next 20 years.

You're gonna have so much more money than what you would have put in the property.

full with money left over to do with whatever you want.

now, until I recently paid off three super low fixed for 30 years when I sold those properties.

Once I did, everything changed.

interest rate mortgage, here's what you came for.

peace of mind goes way beyond just paying off a mortgage.

you and something unexpected happens, the biggest piece of mind is still knowing that they'll be taken care of.

That is exactly why having life insurance in place could be so important. It just gives you a way to plan for the unexpected.

to think that maybe Dave Ramsey has a point.

a positive expected value is just a number. If the spread works and you make money, great. If it doesn't, it doesn't.

The math is the math. There's nothing left to think about.

everything over the last 20 years, except your brain doesn't treat it that way.

For instance, even though everything was on auto payment, I never accounted for the the mortgage and I factor that in my take-home pay.

mortgage repayment in terms of what I get back after selling.

if your income goes down, if you'll lose your job, if the tenant stops paying, it's still there.

be a thing until I started selling off my real estate.

I'm talking the ones with 2.875% mortgages fixed for 30 years.

debt category on my rocket money account drop by millions of dollars, it just felt like an odd sigh of relief.

making the mortgage payments or anything, but just really good freeing feeling for some reason.

describing what it was like, but it was as though something I didn't even know existed until it was gone.

choice to give up low interest rate mortgages, just felt really nice.

going on and this is one fewer thing to think about.

doing research on it, there's a lot of positive idea even existed.

Like one piece of research found people were less anxious, made better decisions, And what's crazy is that this wasn't just a low-income And it wasn't just the amount of debt either.

It was the number of accounts it comes to the final piece of paying off your loan to be totally clear paying off a 3% mortgage is not a financial decision last 10 years treating.

This is an optimization problem in the stock market the market wins, hands down, and it's not even close.

down the loan, it's hard to put a price on this, but it's simply peace of mind. Again, there is research on this too.

$2,000 payment that you could leverage into the markets to make more than $2,000, another thing that you mentally have to keep track of.

as important to overall happiness as their job, health, and relationships combined.

in the market, and after a while I started to realize that important as trying to get as much mental, clarity, and peacefulness as possible.

that cash on hand predicted life satisfaction better than income, better than investments, and better than net worth.

that's not good either, because you're taking the putting it into the least liquid thing that you have, a house.

And it's hard to undo it once you make that transfer.

mortgage company and say, hey, money's a little tight again. I need that $50,000 back. They're not going to do it.

sides at all times no matter what and then pay down debt second.

down their mortgage instead of maximizing their tax-advantaged about 38% of them were making the wrong choice they felt like the mortgage was the safer option.

paying down, it's probably not a good idea to pay down the 3% mortgage, but if you want peace of mind after already getting the rest of paying down a mortgage does start to make sense if you value what you came for.

Honestly, I think the answer is that everyone sleep perfectly fine, while other people don't even want to have older, just the optimization of every rate, every dollar, and starts becoming just another thing to think about and stress about.

to ask yourself what all of this is eventually for. Is it to get the biggest bank account possible?

can, never get rid of that low interest rate mortgage.

the year and if I ever moved in the future I'd now strongly Of course in terms of my advice for everyone watching because there's practically number one you always want to put an emergency then after that take the employer 401k match if you have it.

interest rate debt or credit cards that you have.

down the mortgage if that's something that's important to you.

debt below like four or four and a half percent more power to you.

I agree with you. I think logically that makes sense.

But there's also a component of mental clarity that I think is hugely underrated.

And that's something I never fully considered until just recently.

Anyway, if you made it this far on the video, I really appreciate it.

paid off low interest rate debt early and you regret it, tell me.

know that too down below in the comment section.

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So if you leave me said, thank you so much and until next time.