Posted on: December 17, 2020
WI 582 | Paying Off Your Mortgage


In the United States, mortgages are the most common type of personal debt. Depending on the type of mortgage, you’ll generally finance at least 80% of the home price.

However, the total cost of the mortgage is more than the actual price tag. It will also include the interest you’ll be paying on the loan. That said, would it make sense to pay off your mortgage?

In this episode, Mr. TTP himself, Brent Daniels, tackled the pros and cons of paying your mortgage. If you can’t decide if paying your mortgage is a good idea, this episode should make the decision-making process easy for you!

Smart Decision Or Huge Mistake – Should You Pay Off Your Mortgage?

Episode Transcription

Should I pay off my mortgage early? Write down the pros and cons of paying off your mortgage. Number one, you own your house. You’re free and clear. Let’s be honest. If you have a mortgage on your property, you are a financial slave to the bank. Part of your income every single year goes towards that interest payment. Interest is not the equity of your house. It goes to the bank making more money off of you working every day.

You work from January to March to April, depending on how big your mortgage is, just for the bank’s interest payment. Think about it. The first twenty years of your wallet are all interests. Have you ever looked at an amortization schedule of your mortgage? It’s bananas how much interest you were paying in the front part of that, how little of your principal you’re paying off, and how little the equity you’re getting is. It’s a huge stress reliever to know that you no longer are a financial slave to the bank in the form of a mortgage. Mortgage literally means to die.

The biggest con of all of them of paying off your mortgage is opportunity costs. I have talked to so many financial advisors and people about whether or not to pay off my mortgage. The people are like, “Go invest. Buy assets and have those assets pay you passive cashflow. Be smart about it. Use that money.” Once you put the money into your house, it’s dead money because your house is a liability, no matter if you own it free and clear or if you don’t.

If you take that money and take those hundreds of thousands of dollars you use to pay off your mortgage and put it into investments, then other people are paying your debts or you own those free and clear, and they’re paying you. You put it into a company, a business, an investment and you’re making so much more money than you would when you pay off your mortgage. Yes, you’re not paying the 3.5%, 4.5% or 5% interest rate that you have on that mortgage, which is great, but can you get more than that in the markets and in other opportunities? The big con is opportunity costs. Does that make sense? I think it does.

The rich rule over the poor, and the borrower is a slave to the lender.

Pro number two is what happens in bad times. What happens when your income gets dramatically slashed? What happens when you have a lot of debt out there and don’t have the ability to pay it off? It is a beautiful and wonderful time. It’s money-making time, but what happens during the shifts? It does shift.

We got a huge one in 2008. Personally, I lost five properties. I foreclosed on five properties from that time period because I thought that the sunny days would never end. There’d be sunshine and rainbows, and the birds would be chirping forever. I’d always be making awesome amounts of money, and it didn’t happen. My renters couldn’t pay the rent, so I couldn’t afford to pay those mortgages and pay for my own house. It was a miserable time. There was a lot of stress involved there.

A huge pro number two is that you reduce your stress. How about going to bed knowing that you don’t have to pay a mortgage? What if you pay off all your debts? The only thing that you’re paying for is utilities, entertainment, food, travel and kids. What a life that is? That’s less stressful than having to deal with paying debt and interest to the bank because the bank is taking that interest, and they’re lending it out to more and more people.

Why do you think banks have the biggest buildings, and they have ATMs on every street corner? They have some of the best pieces of real estate on the planet because they make a lot of money on people’s mortgages. It’s an absolute fact. If you look at how much you will actually pay the bank on your mortgage, you’re going to pay double what you borrowed from them over the lifetime of the loan. “That’s 30 years. That’s only a little bit every month.” You’re right, but if you have the opportunity to pay that all off, think about how much you’re going to save.

WI 582 | Paying Off Your Mortgage

Paying Off Your Mortgage: The biggest con of paying off your mortgage is opportunity costs. Everyone is telling you to invest, buy assets, and use those assets to pay you passive cash flow.


Number two, the government wants you to be in mortgage debt. The government wants you to be in debt and to be paying interest to the banks because the banks pretty much fund everything. They bailed out the banks. If the banks went under, then we’d have serious economic problems. They want us to be working towards paying the banks.

With that, there is an advantage with having a mortgage and with the government wanting you to have a debt. That is, you get to write off the interest that you pay on your mortgage on your taxes. I am certainly not a CPA. Talk to your accountant about that, but you’ll find this pretty common knowledge if you do a Google search. You get to your tax base based on how much interest you pay. If you’re not paying any interest on a mortgage, then you don’t get that advantage, so that is a con for number two.

Pro number three is summed up very easily right here in Proverbs 22:7. “The rich rule over the poor, and the borrower is a slave to the lender.” It’s right there. It’s black and white. It’s so simple. Think about how free you’re going to feel when you don’t have the burden of debt. When you’re not putting your money into interest, you have a lifetime to spend, especially if you’re a young person wholesaling real estate, real estate investor that’s getting those big, huge and amazing deals. You’re getting big piles of money because you’re providing so much value and service in the marketplace that you were able to pay off your mortgage early because you have so much saved up. It’s incredible. Think about that feeling and emotion that you’re going to feel once you pay that off.

Con number three is money is not liquid anymore. Once you put it into your house, once you pay off your debt, that chunk of money that you had saved, pulled, put together and piled up, or maybe it was an inheritance, but maybe it was from going out every day and providing incredible value. All of that money is no longer liquid. It is in your house. It’s tough to pull that money out in case of emergencies. A big chunk or percentage of your money is locked into your house.

Once you pay your mortgage, that money is not liquid anymore.

Do you know that the average millionaire pays off their mortgage in ten years? I believe that because absolutely every one of my business mentors, whether real estate finance or an entrepreneur mentor, all have their houses paid off. I’m thinking, “I’ve made a great amount of money wholesaling properties, being so proactive out there, and keeping a lot of the money for me and my family. Do I buy a Lamborghini Countach?”

Do you get something like that? Do you buy something cool like that? Do you do the boring thing, pay off your mortgage and not have a mortgage payment? I had decided to absolutely do it. On the back of your mortgage statement or at least on the back of your mind, it has the payoff request number. It said 18777 Payoff. I’m going to call that number and I’m going to get the payoff amount. You have to send it in. I assume they take the funds and send you the deed, which is absolutely incredible.

From this day forth or from the day that goes through, I’m not going to be paying interest on my house. I’m going to own my house free and clear. The bank’s not going to mind. If you have a mortgage on your house, the bank owns your house. If you stop paying the bank, the bank takes your house. That’s not your house. That’s the bank’s house. It’s about to be my house because I’ve worked hard. I’ve been proactive. I have called and talked to so many people to get to this point where I am able to pay off my mortgage, have healthy savings, healthy investments and get absolutely debt-free as much as I can.

I encourage all of you. If you are out there and you’ve made that beautiful choice to wholesale properties, then you are going to experience this opportunity because you’re going to provide so much value in the marketplace that you’re going to get so much money back to you. You personally and your family has the ability to pay off your mortgage, all debts to go forward in life and only have to worry about the little bills that you have. It’s incredible. It’s like going back to high school, maybe junior high or elementary school, where you didn’t even know what bills were. I can’t wait for it. It’s like weights being lifted off, and I’m so excited about it.

I encourage you to pay off your mortgage. I know my mentors would encourage you to pay off your mortgage. Do whatever you can to be debt-free. Live that stress-free life. Always talk to people on a regular basis. That’s how you get here and to get to the point where you can pay multiple hundreds of thousands of dollars off on your mortgage and be able to be debt-free. I hope it helps and gives you clarity on what at least I would do with the funds and my mental place. Until next time. I love you. See you.

About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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