My Wife Wants the House Paid Off—But I Don’t See the Point

Summary

Episode Overview

Theme:
In this episode of Ramsey Everyday Millionaires, hosts from the Ramsey Network field a call from Adam in Dallas, Texas, who’s in a financial debate with his wife: Should they pay off their mortgage if their investments currently earn higher interest than their mortgage rate? The discussion dives deep into the numbers—and even deeper into the emotional and relational aspects of money decisions in marriage.

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Key Discussion Points & Insights

1. Adam’s Situation & Central Question

• Adam’s Dilemma: He and his wife have enough in savings/money market accounts to pay off their $327,478 mortgage at a 3.625% interest rate.
  • Adam’s View: Prefers to keep funds invested in conservative accounts earning ~3.8-5%, believing it’s smarter financially to make more in interest than he pays on the mortgage.
  • Wife’s View: Wants the house paid off for the security and peace of mind.
• Main Question (01:05):

  “Why, oh, why would I pay off my mortgage when I can make more? ... It just doesn’t make sense mathematically.” — Adam

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2. Math vs. Emotions in Financial Decisions

• Host Response (George):

  • Acknowledges Adam is not alone in this dilemma.
  • Breaks down that while numbers matter, sometimes financial decisions are about more than just “the math.”

• Quote (02:45):

  “It's just not about the math. She does not care if you guys could make a thousand and you didn’t that year because you paid off the mortgage. ... There’s a peace that comes with it.” — George

• Practical Considerations:

  • If Adam pays off the mortgage, they'll free up a substantial monthly payment they can then invest.
  • Both scenarios—investing or paying off—leave Adam and his wife financially strong.

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3. Security, Flexibility, and Peace of Mind

• Contingency Planning (03:48):

  • What if someone lost a job, got sick, or the economy declined?
  • Adam argues his cash is “liquid” and he could pay off the mortgage anytime.

• Host’s Perspective:

  • Real security isn’t just about liquidity; it’s about having zero debt when life gets tough.
  • Quote (04:38):

    “There’s something in her that knows that peace is more than just the spread. ... Nobody can come after your house. You own it free and clear.” — George

• Adam Admits (05:11):

  “Nobody’s ever going to regret not having a mortgage. Nobody's going to say, ‘man, I wish I had my mortgage back.’”

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4. Amounts in Perspective & The Real Value

• Income Comparison (05:27):

  • Adam: ~$140-$150k/year
  • His wife: ~$200-$250k/year
  • The ‘extra’ $2,000/year in interest earnings is relatively minor for them.

• Host’s Read on the Situation (06:19):

  “Your wife is looking at this emotionally, and you’re looking at this logically. Nothing wrong with that at all—you’re a smart guy. ... I just think you’re going to have to decide ... do I want to meet my wife where she is and help her feel safe?” — Ken Coleman

• Practical Nuggets (07:29):

  “Is it worth paying $12,000 in interest to make $12,000 on a savings account? ... I’m just going to pay it off and get some peace in my life and happy wife. I’ll take that as a bonus.” — George

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Notable Quotes & Memorable Moments

• On Math vs. Emotions
  • “It’s so far beyond that [math]. ... She does not care if you guys could make a thousand and you didn’t that year because you paid off the mortgage. ... There’s a peace that comes with it.” — George (02:45)
• On Security
  • “Nobody can come after your house. You own it free and clear. If life happens, you’re going to be okay.” — George (04:38)
• On Marital Harmony
  • “Have fun having a disagreement in your marriage for the rest of your life. ... I’m kidding.” — George (04:31)
• On Marriage & Money
  • “Do I want to meet my wife where she is and help her feel safe? ... I think you just look at it totally different than she does.” — Ken Coleman (06:19)
• On Perspective
  • “Nobody’s ever going to regret not having a mortgage. ... But, you know, part of me would be like, ‘Ah, gosh, it’s $2,000 this year. I could have bought a new [mountain bike].’” — Adam (05:11)

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Timestamps of Important Segments

• 01:05 — Adam explains his logic for not paying off the mortgage.
• 02:45 — George discusses why paying off debt is not just about numbers.
• 03:48 — Scenario: What if something goes wrong (job loss, health)?
• 04:38 — Host details the emotional/safety dimension of a paid-off home.
• 05:27 — Comparing the ‘gain’ to their annual income.
• 06:19 — Ken Coleman synthesizes the logic-vs-emotion divide and the importance of marital harmony.
• 07:29 — George summarizes: it's a wash mathematically, but peace is worth it.

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Summary

This episode is a practical, relatable look at a classic personal finance debate—should you pay off your mortgage early when investments may yield more? The hosts emphasize that while the numbers matter, the emotional security and harmony in marriage often trump small financial gains. If you want both financial and marital peace, sometimes “winning the argument” is less important than having a paid-for home and a happy spouse.

Key Takeaway:
Even for disciplined savers and earners, the best financial decision isn’t always about maximizing returns—it’s about maximizing peace, security, and unity at home.

Transcript

[A]

Foreign. This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Adam is up in Dallas, Texas.

[B]

Adam, how can we help?

[A]

Hi.

[C]

How are you guys doing? Thanks for taking my call.

[B]

We're doing great. What's going on with you?

[C]

So my wife is an avid listener to your show.

[B]

Oh, well, of course she is. You married a good woman. Tell her we said thank you.

[C]

I did.

[A]

All right.

[C]

I did. I will. I honestly, just being, like, honest, I don't listen to it very much unless she's in the car with me. But I have.

[B]

Okay, let's put Adam on hold. Who's next? Who do we have next? I'm kidding, Adam. I'm kidding. Go ahead.

[C]

But I have listened to the audible book money makeover, and let me just say, 95% of the things in there, I 100% agree with. It's preaching to the choir. But there's one thing that you guys preach that my wife agrees with and I don't.

[B]

Oh, I love it.

[C]

What is it that is paying off your mortgage? I'll give you a little.

[B]

What a silly idea, right? No.

[C]

We have a $327,478.50 mortgage right now with a 3.625 interest rate. And I have been very adamantly against paying that off for the last several years because if we invest our money very conservatively, very safely, high yield savings account, money market account, it's been at 4.5 to 5% for the last several years. Just recently, it got down to 3.8. And my question to you is, why, oh, why would I pay off my mortgage when I can make more? Having it in conservative, basically guaranteed money versus at 3.8, versus, you know, getting back 3.625 by paying it off.

[B]

Adam, would you believe.

[C]

Would you believe 2000 a year right now?

[B]

Would you believe you're the first person to ever hit us with that?

[C]

I figured I wasn't. But again, I.

[A]

Here's the question.

[B]

You are not the first person. You are correct, sir. George, tell him.

[A]

Why do you have $327,000 sitting in that savings account?

[C]

So not a savings. So we've got. In money market account right now we have enough to pay off our house.

[A]

That's what I'm saying. So you have the money to pay it off?

[C]

Oh, yes, sir.

[A]

But you like to see it grow at 3.8%, which, by the way, you owe taxes on all the money you're making from that. You Understand that? So it's not apples to apples already.

[C]

The interest can be written off taxes. Why?

[A]

So the mortgage interest is what you're saying because you guys itemize every year.

[C]

Correct.

[A]

Okay, so I can give you the logical math answer and that's where you're going to want to spar, but it's so far beyond that. And what your wife is getting at is it's just not about the math. She does not care if you guys could make a thousand and you didn't that year because you paid off the mortgage. Because the other part you're not taking into account is once you free up that mortgage payment number one, you can invest that amount and you'll likely be back to where you were pretty quickly. I assume you guys have a great income.

[C]

The way you're talking, Pretty good. Yes, sir.

[A]

Okay, so can we agree that you could save up 300,000 bucks pretty quickly with your income if you had zero debt?

[C]

Yeah, absolutely.

[A]

Okay, next question. Are you going to be broke in retirement if you pay off your mortgage and liquidate that investment account?

[C]

No, absolutely not.

[A]

So the argument is, do I want 5.6 million in retirement when I am 63 or will it be 5.3 but with a paid for mortgage, can we agree that's kind of what we're. It's kind of like both scenarios are pretty great. We can agree there.

[C]

Yeah.

[A]

The other question, are you both working full time right now?

[C]

Yes.

[A]

Now let's play this out. What if somebody lost their job, had a health situation, there was a recession. All of the factors that can happen in life to where now you go, oh gosh, I'd rather not have a mortgage when life comes at me.

[C]

So that's why I have the money and things where I'm not going to lose. I'm not going to put this money in the s and P500 or some one of the markets that can fluctuate day by day. This isn't something that is safe. Like I was talking about either high yield savings accounts or the money market to where I can take that money out anytime. If we did lose our job, or let's say the money market or high yield savings accounts got down to 3.5, I could just take that money and pay off the mortgage that day.

[A]

Okay, well, have fun having a disagreement in your marriage for the rest of your life. Oh, I'm kidding. Oh, sure.

[B]

That's not fair.

[A]

Her security glands flaring up. It's not because of Ramsey. It's because there's something in her that knows that peace is more than just the spread. And that's what she's after. Nobody can come after your house. You own it free and clear. If life happens, you're going to be okay. And the truth is, you're probably going to be okay either way. And so paying it off, do you really think you'd sit there and go, gosh, I could have made $5,000 this year off that savings account? Or are you going to go, man, it feels good to not have a mortgage. And the flexibility we now have, the options we now have, the freedom we now have was well worth it.

[C]

Yeah. And I agree. I think it's a little bit of both. I think nobody's ever going to regret not having a mortgage. Nobody's going to say, man, I wish I had my mortgage back. But, you know, part of me would always be like, ah, gosh, it's $2,000 this year. I could have bought a new.

[A]

How much do you guys make?

[C]

You know, I do about 140, 150 a year, and she does probably 200. 250.

[A]

Okay, so $2,000 is a drop in the bucket. We can. It's like kind of saying, I'm doing the credit card game for the rewards. I like getting two grand free. And I know it's not a big amount, but it just feels nice, right?

[B]

Yeah. You know, I'm sitting here listening, by the way. I'm always on the side, like, either I'm on with Dave or I'm on with a money personality. And this call comes in, and I'm always just sitting here. You know, it's like letting them do it. I'm like. And I'm just listening for what's really going on. And I. I think there's two things I heard you say a minute ago. And George started talking. He talked over. He was so rude. So I didn't pick up what he's. What you said. But I thought you said about the $2,000. And then she's like, I could have bought a mountain bike. Did you say that or am I hearing things?

[C]

Yeah, I was just kidding around, but yeah, no, you weren't.

[B]

But see, you weren't. I'm not a money expert, but I can tell you this. I've coached over 15,000 people live before. I'm an expert at hearing things and seeing things. And when I heard that, I went, that's not a joke. And I'm going to tell you what I think is going on with this thing between you and your wife, because George has explained it beautifully, so I have nothing to add to that. But let me tell you what I think is going on. Your wife is looking at this emotionally and you're looking at this logically. And I think you look at all money things as logic. Nothing wrong with that at all. You're a smart guy. You're not a goofball. You're not a loser. You've been very wise with money. I just think you're going to have to decide in this situation, how important is it to me to make the $2,000 every year and either bank it or buy the mountain bike off of my interest and I feel so good about my logical choice, or do I want to meet my wife where she is and where she is emotionally and help her feel safe? I. I think that's the choice. That's my read. And I think you just look at it totally different than she does. I don't think you need to walk a mile in her shoes for a little bit.

[A]

The question is, is it worth paying 12 grand in interest to make 12 grand on a savings account? Basic math tells me it's a wash, dude. I'm just going to pay it off and get some peace in my life and happy wife. I'll take that as a bonus.