Should I Pay Down My Mortgage or Invest if I'm Moving in 5-7 Years?

The Money Guy Show
The Money Guy Show
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Published 2024-07-12
I just moved into a new home and the repair and maintenance costs are already adding up. I was initially ambitious about trying to pay down the mortgage ASAP but now I'm rethinking the strategy. If I am moving out of my house in 5-7 years, does it make sense to pay down the mortgage early or should I just save and invest the extra cash?

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All Comments (8)
  • @stevenporter863
    People need to realize a house or high net worth doesn't necessarily equate to liquidity.
  • @fredmeyer369
    I love how y'all tackle the complex questions vs taking the softballs.
  • @TheFirstRealChewy
    The question is about paying down the loan or investing if you are going to nove relatively soon. Hence this person is not worried about the cost to move or do repairs. They have the money to invest, but where should they focus that investment. I'd say limit home improvements to things that will noticeably, negatively affect the resale value of the house or you ability to sell the house. All other improvements will cost more than selling the house for less. If they want to utilize those improvements before they sell then that's a personal choice. The next thing is what's the interest rate today. If they just bought in this high interest rate environment then chances are interest rates could be similar or lower by the time they move, so paying off the house now won't really matter. If they locked in at a low interest rate then paying off the house now will allow them to take out a smaller loan when they move, assuming they are buying a similar priced home. The lower loan amount will help offset the higher interest rate on the loan. I have ths same situation.
  • @user-kh6wj6yp3l
    Someday, when we are all grown up, “Millionaire vs Millionaire household” will be better defined in all these statistics. Example (the average millionaire crosses over into millionaire status at the age of 49”. Are all these people single?
  • @FrederickB.Harvey
    I'm 47yrs old. $73,000 biweekly and I'm retired, this video have inspired me greatly in many ways that l remember my past of how I struggled with many things in life to be where I am today!!!!❤️