306: Should You Pay Off Your Mortgage Early — Or Invest Instead?

Many homeowners locked in historically low mortgage rates over the last several years — often well below long-term expected market returns. So a common question comes up: Should you pay off your mortgage early, or invest that money instead? Why low mortgage rates change the math How long-term investing and compounding factor into the decision What financial professionals mean by arbitrage Why paying off a mortgage early can reduce liquidity and flexibility How this choice should align with both short-term stability and long-term goals This isn’t about telling you what to do. It’s about understanding the trade-offs — and making decisions intentionally, based on your full financial picture. Whether you’re considering paying off your mortgage early or deciding how to deploy excess cash, this framework can help you evaluate the decision with more clarity and confidence. Key Takeaways 00:00 Should You Pay Off Your Mortgage Early? 02:21 The Real Benefits of Paying It Off 03:16 The Trade-Offs Most People Miss 04:41 The Non-Negotiable First Step (Emergency Reserves) 05:20 The Right Way to Think About the Decision 06:30 The Bottom Line Show Notes To get access to the full show notes, including all the resources mentioned, visit: https://hendershottwealth.com/podcast/pay-off-mortgage-early-or-invest Follow Hilary on: LinkedIn Instagram YouTube Hendershott Wealth Management, LLC and Love, your Money do not make specific investment recommendations on Love, your Money or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of Hilary Hendershott, CFP®, MBA.