Ashley and Jim, a Chicago couple with two kids, are feeling stuck. They’d paid off their debt, built an emergency fund and are investing 15% for retirement while also saving for college. Yet their $155,000 mortgage feels like it is going nowhere.
"We’re just feeling kind of stagnant," Ashley told The Ramsey Show at a live taping in Chicago. (1)
"Every single time we have any extra money, we can’t put it towards our mortgage. We have a plumbing issue, or we need a new car." Just the day before, tree roots had blocked their sewage system — another unplanned cost.
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Ashley and Jim feel like they should be further along. But they aren”t failing. They are experiencing what most mortgage holders face: life’s endless expenses consuming every ‘extra’ dollar unless those dollars are precommitted elsewhere. And that was the missing piece for them.
Why paying off your mortgage early matters
The couple’s frustration is understandable when you consider what’s at stake. Let’s say you have 25 years left on a 30-year, $400,000 mortgage with a 6% rate, adding just $500 monthly can shave off nearly eight years and save you over $122,000 in interest charges. That’s money that could fund retirement or college education, or simply provide breathing room in the budget.
Plus, as eRate.com notes, eliminating mortgage debt means homeowners can "allocate more funds towards travel, health care, hobbies or simply preserving their nest egg for longer." (2) That financial flexibility becomes especially crucial during retirement when income typically decreases but expenses can remain steady or even increase.
But, they also note that the average homeowner doesn’t get to burn their mortgage until age 62. The downside of letting mortgages drag on? You’re essentially funding the bank’s profits rather than your own future. Every month that passes without extra principal payments means more of your payment goes to interest instead of equity.
And for a family already feeling financially stretched, watching years of payments barely dent the principal balance creates psychological strain on top of the financial cost.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
Amortization intention vs. reality
The numbers show a clear difference between intention and reality. According to The Mortgage Reports, citing data from SoFi, Americans keep their mortgages for an average of only 12 years. (3) However, this statistic can be misleading — most aren’t paying off their mortgages in 12 years. Instead, they’re refinancing or selling their homes.
For those who actually stick with a mortgage until it’s fully paid off, The Mortgage Reports notes that "20 to 30 years is a realistic range for most," though there’s "no universal stat on the average mortgage payoff time," according to Steven Glick, director of mortgage sales for HomeAbroad.
The U.S. Census Bureau’s 2023 American Housing Survey backs this up, showing that most mortgages originate with 30-year terms.
However, focused households following structured plans like Ramsey’s 7 Baby Steps average seven years to mortgage payoff, the show’s cohosts noted — achieved through intentional extra payments rather than hoping to find leftover money each month.
The one fix that can change everything
The cohosts pointed out that the couple lack a specific, prioritized mortgage paydown goal, which is important to have on top of their normal monthly payment. Without that regular, fixed commitment to extra principal payments, every extra dollar naturally flows to whatever emergency appears first.
"I would be very specific. Is it $500? ‘Okay, we’re going to do $500 before the other chaos happens in our life,’" George Kamel said. “Make it a priority if it’s a priority. And then track it and you’ll see the balance go down."
This isn’t about eliminating flexibility. It’s about treating mortgage prepayment like any other fixed expense — insurance, retirement and college savings — rather than an afterthought funded by whatever’s leftover (which is often nothing).
The couple also wondered whether they were oversaving in sinking funds, which are dedicated savings for irregular but necessary expenses. Kamel suggested doing a budget audit, asking themselves key questions.
"Why can’t we make progress? Is our emergency fund good? Why can’t we cash flow these things in our budget? Do we need sinking funds for maintenance and repairs so that it doesn’t feel like [they are] derailing this other goal,” he said.
Sinking funds should handle irregular expenses without raiding your mortgage prepayment budget. If sinking funds consistently accumulate unused balances, it’s a sign you’ve got misallocated funds.
Other practical shifts
Ashley and Jim could make some other changes to better prioritize their mortgage payoff goal:
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Make prepayment automatic. Just as retirement contributions come out before you see them, automatic transfers to mortgage principal eliminate the temptation to redirect funds.
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Redirect windfalls strategically. Tax refunds, bonuses and raises can accelerate payoff. Committing half or more of any windfalls to principal can dramatically shorten loan terms.
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Celebrate milestones. "When you go below that six-figure mark, you’re going to get a new pep in your step," Kamel said. Breaking the journey into smaller targets creates momentum.
Also, adjust as your income grows. As children age out of expensive phases and careers advance, you can channel those gains to mortgage prepayment without lifestyle sacrifices.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Ramsey Show (1); eRate.com (2); The Mortgage Reports (3)
This article originally appeared on Moneywise.com under the title: This Chicago couple says they long to burn their mortgage — how The Ramsey Show says they can get there sooner
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.