Mortgage-Free and Full of Regret: Why One US Woman Wishes She Hadn't Paid Off Her Home Early

Owning a home outright is often seen as the ultimate financial milestone—no more monthly mortgage payments, no lingering debt, just complete financial freedom. At least, that's what Kris Ann Valdez and her husband thought when they decided to pay off their mortgage as quickly as possible.

In an opinion piece for Business Insider, Valdez shared how clearing their mortgage at just 30 years old felt like a major victory. The couple believed that saving an extra £870 ($1,100) per month would set them up for a more secure financial future. However, six years later, Valdez deeply regrets the decision—wishing she had taken her financial adviser's advice instead of rushing to become mortgage-free.

Ignoring Professional Advice to Pay Off a Mortgage

The couple purchased a foreclosed property in 2011, capitalising on low mortgage rates as the housing market was still recovering from the 2008 financial crash. Determined to escape the daily grind as soon as possible, they refinanced their £118,668 ($150,000) 30-year mortgage into a 15-year loan, aggressively paying off more than 30% of the debt within three years.

But then, a life-changing event occurred. Valdez was involved in a serious accident and received a substantial settlement cheque—enough to wipe out 80% of their remaining mortgage. Before making any decisions, the couple consulted a financial adviser.

The adviser strongly recommended that they invest the lump sum instead of paying off their mortgage, pointing out that their interest rate was just 3.25%, while investments had the potential to yield significantly higher returns over time. Despite the logical argument, Valdez's desire for complete financial freedom overruled the adviser's suggestions. Convinced that eliminating their mortgage was the key to stability, the couple used the majority of the settlement to slash their outstanding debt. They invested a portion into Roth IRAs and an emergency fund but remained focused on their goal of clearing the mortgage entirely—finally achieving it within the next three years.

Realising the True Cost of Being Mortgage-Free

With no mortgage payments, the couple expected to enjoy a significantly improved financial position, free to focus on early retirement, holidays, and an upgraded lifestyle. However, reality did not match their expectations.

Unexpected expenses quickly piled up—rising maintenance costs for their home and car, increasing property taxes, soaring insurance premiums, and medical deductibles. These extra financial burdens eventually matched what they had previously paid on their mortgage each month, wiping out any perceived financial advantage.

It was only then that Valdez realised a painful truth: most of the money they had 'saved' by clearing their mortgage early was now being spent on unavoidable costs. Meanwhile, the Roth IRAs they had invested in—following their adviser's partial recommendation—had grown at an annual rate of 8%. Had they kept the mortgage and invested the full settlement, their returns would have significantly outpaced their mortgage interest payments, leaving them in a far stronger financial position today.

Mortgage Freedom Isn't Always the Best Move

Despite her regrets, Valdez acknowledged that paying off their mortgage did bring peace of mind—especially when her husband was laid off in 2024. Without a mortgage payment hanging over them, the couple was able to survive on a much smaller budget and avoid falling into further debt.

However, her experience serves as a valuable lesson: paying off a mortgage early isn't always the smartest financial decision. For those with a low-interest mortgage, investing a lump sum into high-yield securities or funds can be a more lucrative long-term strategy. Compounding investment returns over decades can easily outweigh the benefits of eliminating mortgage payments.

Why Expert Financial Advice Matters

Financial advisers who adhere to fiduciary standards are legally required to act in their clients' best interests. Unfortunately, many people dismiss professional advice in favour of emotional decision-making, as Valdez did.

For those uncertain about their financial future, seeking professional guidance can help avoid costly mistakes. Services like SmartAsset aim to make this easier by connecting users with up to three vetted fiduciary financial advisers for free—helping individuals make informed decisions about mortgages, investments, and long-term financial planning. According to SmartAsset, the platform connects over 50,000 users each month with potential financial advisers, offering a practical solution for those navigating complex financial choices.

Ultimately, Valdez's story is a cautionary tale—highlighting the importance of long-term financial strategy over short-term satisfaction. While the security of a mortgage-free life is tempting, it's crucial to consider alternative investment opportunities that could generate greater financial gains in the long run.