09/09/2026
Should You Pay Off Your Mortgage Early? Here's What the Data Says ๐ก๐ต
I am absolutely guilty of this myself. I bought my home in 2018 and refinanced in to a 3% rate in 2019. Since buying, my wife and I have committed to making an extra monthly payment each year. But, when you think of it, in today's economic environment, the extra money you are using to pay down your 3% mortgage rate, actually might be better spent elsewhere...this is all part of the new mindset shift we all need to get used to. The rules have changed.
๐ New data worth knowing if you're a homeowner: about ๐ญ ๐ถ๐ป ๐ฐ ๐บ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐ต๐ผ๐น๐ฑ๐ฒ๐ฟ๐ make extra principal payments on their loans, according to a recent Rocket Mortgage analysis. But here's the twist โ extra payments are actually more common among borrowers with ๐น๐ผ๐๐ฒ๐ฟ interest rates, not higher ones. As Rocket Mortgage's chief business officer put it, "it's not just math, it's psychology." ๐ง
The catch: about ๐ญ ๐ถ๐ป ๐ฑ ๐บ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐ต๐ผ๐น๐ฑ๐ฒ๐ฟ๐ ๐ต๐ฎ๐๐ฒ ๐ฟ๐ฎ๐๐ฒ๐ ๐๐ป๐ฑ๐ฒ๐ฟ ๐ฏ% โ lower than current inflation โ meaning that money might work harder elsewhere (paying down higher-rate debt, investing, etc.) than pre-paying a cheap loan. On the flip side, experts say extra payments make a lot more sense for the roughly 1 in 5 homeowners with rates ๐ผ๐๐ฒ๐ฟ ๐ฒ%, especially with today's 30-year fixed averaging around ๐ฒ.๐ณ๐ฑ%. ๐
๐ Curious how your mortgage strategy fits into your bigger picture โ whether that's building equity, refinancing, or eventually selling? Let's talk:
https://dub.sh/G6alQkq