Anyone who made a final mortgage payment for their house now owns an asset that is probably worth more than it was when the first mortgage check was written. But that homeowner owns much more than a physical asset. They not only built equity they also built self-esteem. Our latest #yourtotalwealth BLOG discusses the psychology of paying off a mortgage, a perspective not usually discussed by lenders or real estate agents.  Enjoy the BLOG, share it with colleagues and clients and learn why Mark Cuban said, “Sweat equity is the most valuable equity”.


— Mark Cuban

“HOORAY! We’ve paid off the mortgage.”

Whenever you hear someone say that, you are looking at a person with a huge grin. Some people even host parties celebrating final mortgage payments. And rightly so. Paying off a mortgage is a celebration of a multi-year journey that began with a dream and ended with home ownership and equity.

That equity provides both security and options. The security means you have a home free and clear, and no longer have to worry about making a monthly payment. The option means you may be able to use the house as a “piggy bank” if you decided to draw down that equity.

But there is another type of equity providing security and options: sweat equity.

When you pay off your mortgage, you benefit from years of focus, commitment, budgeting, sacrifices and labor – the things that make up sweat equity. You earned the money, and then made the commitment to use that hard-earned money for a house, rather than for other things.

The security of your sweat equity is a sense of pride and accomplishment. You have the psychological security of knowing you are capable and competent. You did it. You made it happen; you paid off a mortgage. You proved to yourself and others that you could follow through on a major commitment. You passed your test.

That sense of competence and confidence also provides options. Just as financial equity in your house enables you to use that money for other pursuits, the confidence and competence resulting from sweat equity empowers other pursuits.

When you make that final mortgage payment, raise a toast to your sweat equity – the heart, soul, tears and commitment that made it happen.

If you have a mortgage, look forward to the day when you too will say, “HOORAY! We’ve paid off the mortgage.”

HSF Publishing

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