We Built a Mortgage Calculator to Solve the Pay Off vs. Invest Debate (For FIRE)

BiggerPockets MoneyNov 14, 202527m 41s6.7K viewsScore 85
Pricing & Profitability
intermediate
mortgage payoff
investing
FIRE
financial planning
mortgage calculator
M

Summary

AI-generated

This episode explores the complex decision of whether to pay off a mortgage early or invest the funds, especially for those pursuing Financial Independence, Retire Early (FIRE). Hosts discuss a new mortgage calculator that factors in interest rates, investment returns, and tax implications to help viewers make an informed choice based on their unique financial situation.

Key insights

  • Historically, investing a mortgage payment instead of paying off a 6% mortgage could yield 50% more wealth over the long term, assuming consistent market returns.

Mistakes to avoid

  • Ignoring the tax implications of investment gains or the potential tax benefits of mortgage interest deductions can skew the perceived advantage of investing over paying off a mortgage.

Tools & resources

  • BiggerPockets Mortgage Calculatortool

    A mortgage calculator built by Scott Trench, available on BiggerPockets Money, which factors in interest rates, investment returns, and tax considerations.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial