[Ronaldus Magnus]

But there’s a flaw in it that Cruze sums up perfectly in her reply. “My question back always is, ‘If your house was paid off, would you borrow on your house to go invest in the market?’ The answer is usually no.”

It would be foolish to pay off a 3% fixed rate mortgage early instead of using that money to buy the 5.9% government bonds available right now. This woman is an idiot or a fraudster. Only the banks are better off whem these below market rate loans are paid off early.

[where's_the_Outrage?]

It would be foolish to pay off a 3% fixed rate mortgage early instead of using that money to buy the 5.9% government bonds available right now.

Well I may be a fool, but I'm financially secure, content, and glad I don't have debt hanging over my head. The well being of debt free cannot be overstated IMHO. What my mortgage payment would have been goes into investments and quality of life. Have no regrets in paying off my VA low interest loan early.

[DAC21]

“It would be foolish to pay off a 3% fixed rate mortgage early instead of using that money to buy the 5.9% government bonds.

Could you point me to this bond yield. I’m not finding it, at least not US Gov. Bonds. State, city bond?

[Alberta's Child]

I’m in that position right now. In fact, I’ve wondered if I could pay the mortgage off with a steep discount by offering to make a cash payment for, say, 80% of the remaining loan balance. Surely a lender who is sitting on a long-term fixed rate mortgage at 3% would have to consider such a thing — right?

One of my occasional criticisms of the Ramseys is that they are not consistent about how they approach different facets of personal finance. They advise against buying new cars because they consider it a poor investment (when car is NOT an investment), but then ignore one of the most important investment considerations — personal liquidity — when advising people to pay off their mortgage early.