Chapter 03 — Money & Finance

Should I pay off the mortgage early?

Compare your mortgage rate against what you'd safely earn elsewhere. If your rate is below ~5% and you're not at risk, investing the difference usually wins long-term. Above ~6%, paying down is a guaranteed return. Don't ignore the emotional weight either — a paid-off home is a real form of safety.

Follow-up questions

Fixed or variable rate?

Fixed when rates are low or you value certainty; variable when rates are clearly falling and your budget can absorb a rise.

Should I refinance?

Roughly: when rates drop at least 0.75–1% below yours and you plan to stay in the home long enough to recover the closing costs (often 2–3 years).

What's a good down payment?

20% avoids private mortgage insurance and gets the best rate, but 10% with PMI is fine if waiting another year means losing the home you want.

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