Do millionaires pay off mortgages?

[Brookz]

Hey everyone! I'm curious, how do theyhandle money? Do they pay off mortgage or invest instead? There is no need for a debate, I am just interested in seeing where people stand and how others manage the "pay off vs invest" choice.

 

[heeheeecub]

Millionaires and financial experts often have different views, but they tend to follow a similar logic. The decision usually comes down to comparing the interest rate on the mortgage to the potential returns from investing that same money. If the mortgage interest rate is low, say around four percent, and you can reasonably expect to earn more than that in the stock market over the long term, then it can make more sense to invest the money instead of paying off the mortgage early.

They call it leveraging... Use borrowed money to increase your assets. However, for a lot of people, the peace of mind that comes from being debt-free and having a paid-off home is worth more than any potential investment gains.

 

[MrSam]

Most people I know mix, some pay down the mortgage to get guaranteed returns by avoiding interest, and some invest extra cash for higher long term growth. It usually comes down to comfort level with debt versus potential market gains

 

[whoisonfirst]

No Debt is the best debt;

You really can't get rich until you get all the debt off your back;

They say the hardest is the first $10k then $100k, if you are smart when young, you can easily be a millionaire by 35; IMHO if you +18, buy a cheap old house or farm, fix it up, and put in a renter; Move on do it again, make sure the renter is always covering the MTG;
Never make a MTG over 15 years; That way when your 35+ all your rentals are 'free&clear' and all the rents are your cash;

When young time to time I would sell a property(s), normally cuz it wasn't a good rental; In that case I would always take the proceeds and pay off other MTG's on other rentals; Often the house I was living in, would not be a 'good' rental, super-nice houses make bad rentals, as most renters don't take care of homes;

It's much easier financing, and putting up down payments often 20% for a 15 year MTG; The hard part is finding good rentals, near colleges, or hospitals or schools where you can find 'good renters'

I doubt that being a 'miner' is a sure thing for wealth;

Lastly, by paying off MTG early on rentals, you can 'retire' early, you really can't fix up property's, and make money, until you have quit your 'day job'; All millionaires 'don't work for somebody else', all their time is their time;

99% all all great human fortunes in human history were made in 'real estate', deal with it, and remember that outside exceptions are a minority; Becoming an AI billionaire, is as likely as becoming a world class boxer, or sports star; But any 'forest gump' guy can become a millionaire in real-estate by just mowing all the lawns himself every week during grass growing season;

 

[Love8]

Most millionaires with cheap mortgages like under 4% keep them and invest the difference. I think the math just works better when you can pull 8 to 10% or so in the market instead of paying off a 3% loan.
Seems like younger millionaires who are still building tend to leverage the cheap debt and older ones or people who've already made it often just want the peace of mind of no mortgage payment, I can't blame either approach honestly
@whoisonfirst your post makes a lot of sense I must say