Ramsey Everyday Millionaires Why Would I Pay Off My Home When I Can Invest?
Feb 27, 2026
A caller asks whether to pay off a 6.3% mortgage or keep investing. They debate how risk, job loss, taxes, and foreclosure change the math. The conversation explores psychological, relational, and health costs of carrying mortgage debt. It ends by valuing the peace of owning a home outright over purely chasing higher market returns.
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Listener Asks About Paying Mortgage Or Investing
- Christiana calls from Chicago asking about the order of baby steps six and seven regarding mortgage payoff versus investing.
- Her question frames the episode: should you pay off a 6.3% mortgage or invest for a 10% market return?
Risk Nullifies Mortgage Versus Market Spread
- Dave Ramsey argues the simple math comparing mortgage rates to market returns is incomplete because it ignores risk adjustments.
- He says once you adjust for risk, the perceived spread from investing instead of paying the mortgage is neutralized, changing the math outcome.
Mortgage Debt Multiplies Personal Risk
- Carrying more mortgage debt increases overall risk, affecting job security and the ability to withstand shocks.
- Ramsey notes mortgage payments are fixed obligations while market returns outside retirement are taxable, making debt paydown a form of forced savings.