Quick Answer: Is It Better To Be Debt Free Or Have A Mortgage?

Are you debt free if you have a mortgage?

Yes.

A mortgage is a kind of debt.

Someone lends you money to buy your house, and you owe them the money, so you have debt.

Yes, a mortgage is debt.

Is it better to invest or pay off mortgage?

The primary advantage of investing instead of paying off your mortgage is that you’re building a liquid asset that has the potential to put you in a better financial position than if you simply eliminated your mortgage interest expense.

Is it smart to pay off your mortgage?

Paying off your mortgage early frees up that future money for other uses. While it’s true you may lose the mortgage interest tax deduction, the savings on servicing the debt can still be substantial. But no longer paying interest on a loan can be like earning a risk-free return equivalent to the mortgage interest rate.

What age should you be debt free?

The average person should be debt free by the age of 58, unless you choose to extend your payments. Otherwise, you could potentially be making payments for another two decades before you become debt free. Now, if you were to use a more disciplined budget and well-planned payments, you could be done by age 39.