There’s some truth to the concept but not at this level.
However, if an average person has a 100k mortgage and 100k in savings, they *could* pay off their house, but then they’d be BROKE. They’d have a paid-for house, but zero savings.
Granted, in that scenario, they could then save a lot of cash rather quickly no longer having that payment, but most advisors would tell the person in my example NOT to pay off their mortgage at least not yet.
Ridiculous. They aren’t broke, they own a very large asset. They’ve just eliminated their highest monthly bill.
Anyone who ‘advises’ people who own 150k to put on a mortgage should be fired.