Why do people say not to pay off your mortgage?
Understanding the reasoning behind a common piece of financial advice.
Why do people say not to pay off your mortgage? This question often comes up when homeowners compare debt freedom with investing and long term financial flexibility.
Answer
People sometimes advise against paying off a mortgage because the loan often carries relatively low, fixed interest compared with potential long term investment returns. By directing extra cash into retirement accounts or other investments, you may build more net worth than by eliminating the mortgage faster. Others value liquidity: keeping savings accessible protects against job loss, medical bills, or other surprises. There is also the tax angle, though fewer people itemize today; if you do, paying interest can support a deduction. Ultimately, whether to accelerate payoff depends on risk tolerance, investment options, and how much peace of mind a debt free home provides.
You can explore how different payment strategies affect long term costs using our home loan planning tools.
See related questions in the mortgage FAQ library.