Should I Pay Off My Mortgage?

October 17, 2025 | Kevin Brierton Team | , , ,

It’s one of the most common questions I hear:
“Should I pay off my mortgage early?”

On the surface, it sounds simple — who wouldn’t want to live debt-free? But as a Certified Liability Advisor, I’ve learned that the better question is:
“Will paying off my mortgage make me wealthier… or just make me feel safer?”

Let’s unpack that.

The Emotional vs. Financial Answer

Owning your home outright feels good. It’s emotional security.
But from a financial standpoint, it’s not always the smartest move.

Your home’s value will rise and fall whether you have a mortgage or not. The loan doesn’t affect appreciation — it just changes where your wealth is stored.

When all your equity is trapped inside the walls of your home, it’s safe but illiquid. You can’t easily access that cash without selling or borrowing it back later — often at a time when you might least want to.

The CLA Framework: Safety, Liquidity, and Return

Every dollar you have should be working in the right location — and your home is just one of those locations.

  • Safety: Your home equity may feel safe, but it earns a 0% rate of return.
  • Liquidity: You can’t easily spend home equity. It takes paperwork, time, and risk to access it.
  • Return: Once equity is inside the house, it stops compounding. If that same dollar could earn 6–8% elsewhere (after tax), you might be losing thousands per year in opportunity cost.

What the Numbers Say

In the CLA course, we often compare the impact of prepaying principal vs. investing that same dollar elsewhere.

For example:
If you applied an extra $500 toward your mortgage each month, you might save 13 years of payments — sounds great.
But if you invested that same $500 at 7% annual return, you’d have nearly $670,000 after 30 years.

So the key question becomes:

Do I want my money working for me or resting in my walls?

The Power of Leverage

When used responsibly, leverage (borrowing at a low, tax-advantaged rate to grow wealth elsewhere) can actually increase long-term net worth.

Many of the case studies from our CLA and Borrow Smart programs showed families who improved cash flow, increased savings, and even funded college or retirement — not by paying down debt faster, but by managing their liabilities smarter.

The Bottom Line

The goal isn’t simply to “be debt-free.”
The goal is to be financially free.

Sometimes that means carrying a well-structured mortgage so you can:

  • Keep liquidity available for emergencies or opportunities
  • Take advantage of tax-deductible interest
  • Earn higher returns elsewhere
  • Maintain flexibility and control

As Todd Ballenger (creator of Borrow Smart University) teaches —

“You don’t get wealthy by paying off debt… you get wealthy by managing debt.”

Final Thought

So before you rush to pay off your mortgage, ask yourself:

  • What will that equity earn once it’s locked away?
  • How could those same dollars work harder elsewhere?
  • And how does that decision fit into your overall wealth plan?

Managing your mortgage is more than a loan decision — it’s a wealth strategy.

Kevin Brierton nmls 599873
Your No Excuse Lender
Certified Mortgage Planning Specialist | Certified Liability Advisor