George Kamel Explains Why You Should Pay Your Mortgage With Extra Funds
Financial guru George Kamel isn’t a fan of debt. While most people agree that credit card debt is bad — given its high interest rates and tendency to stem from overspending — not everyone is in a rush to pay off a low-interest mortgage.
Investors argue that a low-interest mortgage lets you do more with your money, but Kamel is more focused on the peace of mind that comes with having zero debt. He discussed why he suggests paying off your mortgage with extra funds in an Iced Coffee Hour podcast interview.
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The Future Is Uncertain
It’s easy to make monthly mortgage payments if everything stays the same: You keep your job, living costs don’t rise and you don’t face any emergency expenses. That’s a fantasy, and when reality hits, not everyone is prepared.
Some people lose their jobs and suddenly have to tap into emergency funds or sell assets to keep up with mortgage payments. Others struggle as property taxes, transportation costs and grocery prices increase. Even if your mortgage payment stays the same with a fixed rate, your other expenses can change significantly, especially when unexpected costs arise.
“We just don’t know what the future holds. I would rather reduce the risk and have more peace,” Kamel said on the podcast.
Having a Family and Kids Will Change Everything
Kamel said he would likely be a more aggressive investor if he didn’t have a wife or kids. However, he noted that your view on risk changes completely when you start a family. It becomes harder to recover from financial setbacks, and the cost of mistakes increases.
It’s easier to work longer hours when you’re single to recover from poor investments or let assets sit in the market for years. However, there are real consequences for a married parent working too much, including being less present for their spouse and children. A spouse may also feel pressure to work extra hours while the household is still managing mortgage payments.
Once those payments are gone, finances become more flexible. It may be easier to work a standard 40-hour week instead of taking on a second job or side hustle. Kamel said a debt-free home gives him the flexibility to maintain reasonable working hours and allows his wife to stay home.
Losing a significant amount of money on a speculative asset can also hit harder when you have a family. It may affect how much you can provide for your children or what their inheritance looks like. Risk tolerance often decreases with age, especially as people take on more responsibilities and may not be able to earn income later in life. This reduced risk appetite is one reason Kamel advocates for accelerating mortgage payoff.
You Can Get After What You Want
Money is a means to an end. People don’t build wealth just for the sake of increasing their net worth. Kamel leans into this idea, saying that paying off your home early allows you to reach your goals sooner. Lower expenses can provide more financial flexibility and make it easier to achieve key savings goals.
Kamel acknowledged that keeping a low-interest mortgage can build more wealth over time if the money is invested wisely instead. However, for him, the peace of mind outweighs the potential returns. He advocates for avoiding unnecessary risk and stress — and part of that strategy includes paying off your mortgage early.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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