Q&A: What’s the Best Way to Pay Off a House? – Episode 755

If you want to pay off your mortgage, what’s the best way to go about it? Is there a better strategy than just throwing cash at your loan? That’s our first question on today’s Q&A episode!

On this episode of Investing in Real Estate, I’m answering three of your thought-provoking questions on paying off a mortgage, the right amount of money to start investing, and how to leverage your home’s equity to build wealth. Press play to hear my answers to your questions!

On this episode you’ll learn:

• What you need to consider about paying off a mortgage.
• How much money you need to start investing in real estate.
• How to utilize your home equity to start investing.

What You Need to Consider About Paying Off a Mortgage

If you want to pay off your mortgage quickly, I literally wrote the book on this. Check out our bestselling book on Amazon, How to Pay Off Your Mortgage in 5 Years.

That being said, I would encourage you to take a good look at your overall finances and your big picture goals. With interest rates being so low, paying off your mortgage might now be the best move right now. We live in a debt-based society; if you can use the banks’ money to build wealth, I think that’s the way to go. Can you use your home equity to buy rental properties? Instead of using your cash to pay off your mortgage, could you instead buy performing assets? These are just a few things to consider.

How Much Money You Need to Start Investing in Real Estate

This is a simple question with a complex answer. There isn’t one magic number. If you want to invest with our company, the down payment starts at around $45k. However if you’re a DIY investor, you can literally start with nothing. In fact, some of the most successful investors I know started with no money. There are three things you need to start investing: money, people, and a deal. If you don’t have money, you can find a great deal and people who will partner with you. It just takes a little more work, but it’s totally doable.

How to Utilize Your Home Equity to Start Investing

Now is a great time to take advantage of a HELOC if you can find one. I always recommend checking small local banks and credit unions first. A HELOC functions similarly to a credit card–you start with a zero balance and the account has simple interest. Most banks will even give you a checkbook and a debit card. You can use these funds to do just about anything, including growing your rental portfolio!

Ask Me a Question at morrisinvest.com/clayton

Episode Resources
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

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