[Lowcountry]

You mention Ramsey. One of his reasons for advocating home payoff is if something happens like eternal job loss or extreme illness, they can’t take your home because it’s paid for. Once paid for your only expense is taxes and upkeep and if wise insurance. For most, a significantly lower cost than if you add in principal and interest. It also encourages you to use the KISS method in your life. The simpler, the easier to stay out of trouble.

I disagree with your premise. If you had invested your extra cash in alternative investments instead of paying off your mortgage, you would have that cash to live on as well as pay your mortgage each month. With all your money in your "wooden piggy bank" there is no way to release it. You can't borrow against your house if you don't have a job because they know you don't have a means of payment.

I prefer a 30 year mortgage and I would invest the rest in a broad range of mutual funds. Its pretty simple to me. If I borrow money at 6% and earn 10% on my investments, I have netted 4% on the savings versus the mortgage paydown. PLUS, I get a tax deduction on the interest paid. PLUS, I get to invest in things that come due and payable before the house has to be paid off like a college fund for my kids and my ultimate retirement.

One thing to remember - the VALUE of your home is not determined by the size of your mortgage. Once you paydown your mortgage, the value of your home "investment" can only increase as much as the local housing market inflates. That has never been as much as the stock market over an extended period of time.

I like Dave Ramsey and he has some really good advice for people who don't know how to manage what little money they have, but he is wrong on paying off your mortgage. I built a spreadsheet where you can plug in the cost of your home, Interest rate, mortgage term and expected gain in your securities portfolio. It is virtually impossible to beat the long term mortgage unless you think the stock market is going to fold.

Finally, I say this as a partner in a national development company. I have built over a billion dollars of real estate in my career. We build investment value thru informed use of leverage (debt), not wild speculation and "flipping" properties.

[RKBA Democrat]

“I like Dave Ramsey and he has some really good advice for people who don’t know how to manage what little money they have, but he is wrong on paying off your mortgage.”

Key point: people who don’t know how to manage what little money they have. The folks that Dave Ramsey caters to are generally within this category and are usually up to their eyeballs in hock. They are addicted to debt. They don’t need an investment program, they need to get clean and sober.