Episode 315: The Huge ERROR in the Dave Ramsey-George Kamel Plan to Pay Off Your Home in 10 Years

This episode is a critique of a recent video by George Kamel on the supposed benefits of paying off your house in 10 years. David McKnight examines Kamel’s viewpoint on early mortgage payoff and whether it’s truly beneficial – do you really come out ahead by eliminating your mortgage as fast as possible? A major point David sees as a disadvantage is the fact that by paying off your mortgage early, you may lose access to the equity in your home. David highlights the opportunity cost of using funds to pay off a low-interest mortgage (as low as 3%) instead of investing them in the stock market for potentially higher returns. Kamel believes that the longer you take to pay off your loan, the more interest you pay. According to Kamel, how much interest you pay depends on three things: the loan amount, the interest rate, and the time it takes you to repay the loan. David shares an example that illustrates why following the advice of George Kamel’s video isn’t a good idea – and why it could co...