Suze Orman

Will you keep this home for the rest of your life?

Maybe yes, maybe no.

Things can happen over time.

So if you think about it, you have to compare what would you have if you took $20,000 a year and invested it for the same amount of time than if you put it towards this mortgage that the house would be paid off.

Now, if you put $20,000 more per year towards your home right now,

you're going to have it paid off in approximately eight years, just that simple, okay?

If you took that $20,000 a year and you invested it for, let's say, the next eight years, right, maybe depending on your investment return, 6%, 8%, whatever it may be, you would have $200,000 or $250,000.

So it kind of comes out even over that period of time.

If you just stay paying that $20,000 extra a year, you're going to be mortgage-free in 2034.

That's pretty good if you ask me.

However, if you just invest $20,000 a year for the

you continue to put the $100 a month more towards your mortgage because it's at such a low interest rate, in eight years, you would probably only owe $180,000 on that mortgage.

Then if you wanted to, you can decide, do you want to take the money that you made investing, pay off your mortgage or whatever?

I don't think I would pay it off right here and right now.

I would give myself more time, especially at this interest rate.

You know, KT, I don't think people understand that when they buy a home and they take out a mortgage, that the bank knows that most likely you're going to sell that house within seven years.

That's on average.

So therefore, 100% almost of every payment you make does what?

It goes towards the interest, not towards the mortgage.

That's why at the ending years of a mortgage, it's all principal payments because the bank wants to know.