This is how we decided on what to do about our mortgage after thinking through our options.

We started looking for a home in 2009. Mr. Moneyaire and I toured several places before we found the one we live in today. We almost didn’t even see it.

We had just walked through a similar home down the block that we didn’t love. As we were about to drive off, our realtor mentioned another place nearby. It had been on the market for nearly two years. I immediately assumed something had to be wrong with it. Two years? That’s a red flag, right?

But our agent nudged us. We were already there. What could it hurt to take a look?

I’m so glad he did.

The moment I walked in, I fell in love. Here’s a photo Mr. Moneyaire took of me as we entered through the garage into the kitchen. I was instantly smitten.

We live in a tri-level townhome, about 1,745 square feet. What won me over were the high ceilings and how bright the first and second floors felt. So many windows. So much light. And a finished basement! In the Midwest, that’s a big deal.

We bought the home for $225,000 in 2009. Until a few weeks ago, we still owed about $125,000 on it at a 2.875% interest rate. It was our only remaining debt.

We’ve never carried credit card debt. We paid off over $75,000 in student loans years ago. Our mortgage payment was about $1,300 a month. Honestly, that’s less than some people’s car payments.

But Mr. Moneyaire and I didn’t see eye to eye on one big question:

Should we pay off the mortgage early, or let it ride?

Even with a low rate and a manageable payment, Mr. Moneyaire wanted to be 100% debt free. He wanted the debt, and the mental weight he felt from it, gone.

Dave Ramsey, the personal finance guru followed by millions, includes paying off your mortgage as one of his seven “baby steps.” He teaches that eliminating debt brings peace and clarity. Mr. Moneyaire wanted that peace. He wanted the pride of owing nothing to anyone.

Paying off the mortgage early would also save us about $17,000 in interest over the remaining nine years of the loan. For him, it was a huge psychological win.

I, on the other hand, did not want to pay the mortgage off.

I saw our mortgage as the leverage of a lifetime. Sub-3% interest rates are unicorns now and likely will be for a long time. That kind of cheap money creates an interesting arbitrage opportunity.

Instead of paying off the mortgage, I wanted to invest the money. My plan was to split it roughly 60/40 between IVV and HIMU. Over ten years, that $125,000 could potentially grow into $225,000, and the mortgage would be paid off on schedule anyway.

I’d rather make $100,000 than save $17,000.

Plus, we were already paying extra toward the mortgage. At that pace, it would have been gone in about seven years regardless.

This debate came to a head a few weeks ago. We had enough in savings to pay off the mortgage in full. We went back and forth for weeks. It was a true head vs. heart decision.

Academically, we both knew that investing the money would likely lead to more wealth long term. Emotionally, the pull of being completely debt free was strong. For us there wasn’t a single “right” answer when it came to paying off a mortgage early. The mathematically optimal choice isn’t always the emotionally optimal one.

At this stage in our wealth journey, Mr. Moneyaire realized that an extra $100,000 ten years from now wouldn’t bring him as much peace as paying off the mortgage today.

And he made another great point. Once the mortgage was gone, that $1,300 a month could be redirected to investing, travel, flexibility, or whatever we wanted next.

Choice. Options. Freedom.

That’s what wealth is really about.

Personal finance is just as much behavioral and psychological as it is math. Sometimes the “optimal” answer on paper doesn’t feel satisfying. Debt can be leverage, but if it keeps you up at night worrying about job loss or cash flow, even if the fear isn’t fully rational, that matters.

Wealth isn’t just about maximizing returns. It’s about buying freedom, reducing stress, and creating options that align with how you actually want to live.

Lifting a mental burden is powerful.

So we did it.

We paid off the mortgage. We are officially 100% debt free.

Truthfully, it was a little anticlimactic. No confetti. No balloon drop. There were hugs and kisses, and then Mr. Moneyaire ran off to a meeting while I picked up Baby Moneyaire from school.

We don’t owe anyone anything. And that feeling is worth something, even if it can’t be perfectly calculated.

Cheers!

Mrs. Moneyaire