Paying off your mortgage early may give you peace of mind, but it should never be prioritized over building up an emergency fund.
“Once you pay off debt or pay down debt, you now have more equity but less available cash when needed,” said Dr. David Phelps, real estat investor and founder and CEO of Freedom Founders. “There is safety in cash and cash flow. Equity also provides a level of safety, but cash flow is the oxygen that maintains your business or personal revenue needs. Equity by itself cannot do that.”