What does Dave Ramsey say about paying off a mortgage?
A closer look at a well-known personal finance philosophy.
What does Dave Ramsey say about paying off a mortgage? This question often comes up when homeowners weigh financial security against long-term investing strategies.
Answer
Dave Ramsey strongly encourages paying off your mortgage as quickly as reasonably possible after becoming debt free and fully funding an emergency reserve. His philosophy emphasizes the emotional and financial security of owning a home outright. He suggests using a 15 year fixed rate loan where payments are no more than about 25% of take home pay, then making extra principal payments whenever your budget allows. Ramsey views the guaranteed return of interest saved as preferable to stock market risk for many households. While his approach is conservative and not tailored to every situation, it highlights the power of focused, consistent extra payments over time.
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