How many people actually pay off their mortgage?

Is it smart to be mortgage-free?

As a homeowner, your equity is your biggest advantage in today's market. If you're mortgage-free (or close to it), it could give you the power to buy your next home in cash. That means you'd still have no mortgage payment in retirement, plus: Less financial stress as you age.

What salary do you need for a $400,000 mortgage?

To afford a $400k mortgage, you generally need an annual income between $100,000 and $125,000, though this varies significantly with interest rates, down payment size, property taxes, and your existing debts, with lenders typically looking for a < Debt-to-Income Ratio (DTI) below 43% and housing costs under 28% of gross income. A higher income makes it easier to meet these guidelines, especially with a smaller down payment or higher interest rates. 

Is being debt-free the new rich?

Myth 1: Being debt-free means being rich.

A common misconception is equating a lack of debt with wealth. Having debt simply means that you owe money to creditors. Being debt-free often indicates sound financial management, not necessarily an overflowing bank account.

How rare is an 800 credit score?

An 800 credit score isn't extremely rare, with about 22-24% of Americans having scores in the exceptional 800-850 range, meaning nearly one in four consumers achieves this level, although reaching a perfect 850 is much rarer. While impressive, an 800+ score signifies you're a highly reliable borrower, granting access to the best interest rates, but it takes consistent good habits like on-time payments and low credit utilization over time.
 

How many people retire with no debt?

Even though more than half of Boomers plan to retire debt-free, the numbers tell a different story. A survey by the Employee Benefit Research Institute (EBRI) reveals that only 23% of retirees aged 65 to 74 achieve that goal.

What does Dave Ramsey say about paying off a mortgage?

“Paying off your mortgage early seems impossible but it is completely doable and people do it all the time, but how can you do it and why would you want to put in the extra effort? Paying off your mortgage early will rev up your wealth building.”

What is the 3 7 3 rule in mortgage?

The "3-7-3 Rule" in mortgages refers to federal disclosure timing under the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection: lenders must provide the initial Loan Estimate within 3 business days of application, require a 7-day waiting period before closing from that delivery, and trigger another 3-day waiting period if the Annual Percentage Rate (APR) changes significantly (over 1/8% for fixed loans) before closing. This rule, stemming from the Mortgage Disclosure Improvement Act (MDIA), provides crucial time for borrowers to review and compare loan terms, preventing rushed decisions. 

What is the number one mistake retirees make?

The biggest retirement mistakes often involve underestimating costs (especially healthcare and inflation), claiming Social Security too early, and failing to create a detailed budget and investment strategy, leading to outliving savings or taking on excessive risk/being too conservative. Key errors include not saving enough, making emotional investment decisions, and not planning for long-term care, making comprehensive planning essential for a secure retirement. 

Does Suze Orman recommend paying off a mortgage?

Personal finance guru Suze Orman says it depends. While the possibility of job loss can trigger financial panic, Orman advises against rushing to drain your savings to pay off your mortgage early. Even if you have enough money saved to wipe out your mortgage, don't pull the emergency cord until absolutely necessary.

Is it better to be debt-free or have a mortgage?

If you are debt-adverse: Even though debt — when used smartly — can be a wealth-building tool, some individuals just don't like the risk and liability that comes with it. If being debt-free is among your financial goals, then paying off your mortgage is a logical step to achieve that.

What is the 2 rule for paying off a mortgage?

The "2% rule" for mortgage payoff generally refers to two strategies: either refinancing to a rate 2% lower, or adding an extra 2% to your monthly payment to significantly shorten your loan term and save on interest. The first method (refinancing) helps if rates drop significantly, while the second (extra payments) involves paying a small extra amount monthly, like an extra $50 on a $2,500 payment, to build equity faster and pay off the mortgage years sooner. Both methods aim to reduce total interest paid and accelerate payoff, though current interest rate environments make the refinance rule less common, while adding extra money always speeds up amortization.
 

Who has a 900 credit score?

While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 781-800 is considered an excellent credit score.

What credit score do you need for a $400,000 house?

To buy a $400k house, you generally need a credit score of at least 620 for a conventional loan, but you can get approved with lower scores (around 500-580) for FHA loans with a larger down payment, while excellent scores (740+) secure better rates. The required score depends more on your loan type (Conventional, FHA, VA, USDA) and lender than the home's price, with higher scores leading to lower interest rates. 

Does paying bills on time raise credit score?

Building Credit History: If you use your credit card responsibly, paying bills on time can help build and improve your credit score. This can be beneficial if you're looking to apply for a mortgage, car loan, or even a better credit card down the line.

How many Americans have $20,000 in credit card debt?

While exact real-time figures vary by survey, recent data from early 2025 and 2026 suggests a significant portion of Americans carry substantial credit card debt, with estimates ranging from around 20% of all Americans owing over $20,000 (a 2021 survey) to specific surveys finding that over 23% of those with maxed-out cards and a notable percentage of middle-income earners fall into this category, with trends showing increasing balances due to inflation. 

What are 7 Ramsey steps to get out of debt?

You can too!

• Save $1,000 for Your Starter Emergency Fund.
• Pay Off All Debt (Except the House) Using the Debt Snowball.
• Save 3–6 Months of Expenses in a Fully Funded Emergency Fund.
• Invest 15% of Your Household Income in Retirement.
• Save for Your Children's College Fund.
• Pay Off Your Home Early.
• Build Wealth and Give.

Is $100,000 a year considered wealthy?

Earning $100,000 a year puts you above average in the U.S. and comfortably middle-class by many metrics, but whether you're considered "rich" is subjective, depending heavily on your location (high-cost cities vs. low-cost areas), household size, and lifestyle, as it offers stability but often doesn't feel like wealth due to inflation and expenses like housing and debt. While technically upper-class as an individual in some definitions, many people don't feel rich due to high costs, making it more about financial stability than true affluence. 

How much house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house in the $210,000 to $350,000 range, but this heavily depends on your down payment, credit score, and existing debts; lenders look for monthly housing costs under $1,633 (28% of gross income) and total debts under $2,100 (36% of gross income). A larger down payment and lower debts allow you to afford a more expensive home, while high interest rates decrease your buying power. 

What is the true cost of owning a home?

A typical homeowner in the U.S. might expect to shell out about $45,400 a year for home expenses. The costs to consider before owning a home include things like a mortgage, HOA fees, increased utilities, lawn care, and home maintenance and repairs.

What is a good down payment on a $400,000 house?

For a $400,000 house, your down payment can range from $0 (with VA/USDA loans) to $80,000 (20%), with common amounts being $12,000 (3% conventional) or $14,000 (3.5% FHA), but $40,000 (10%) is often a sweet spot for lower payments without PMI if you don't qualify for 20%, with 20% ($80k) eliminating Private Mortgage Insurance (PMI).