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Should I Pay Off My Mortgage or Invest When Interest Rates Are High?

Aug 24, 2026 · 20 min · 9 segments

Higher mortgage rates quietly changed the math on one of the most argued questions in personal finance. If you’re in tech, with a mortgage, RSUs, and real money to deploy, the answer isn’t as obvious…

Higher mortgage rates quietly changed the math on one of the most argued questions in personal finance. If you’re in tech, with a mortgage, RSUs, and real money to deploy, the answer isn’t as obvious as it used to be, and the stakes are higher than a simple rate comparison suggests. In this episode, Amy Walls walks you through how to weigh a guaranteed return against an uncertain one, what extra mortgage payments actually compete with (it’s not your 401(k) match), how your equity comp and concentration picture change the call, and how to set a...

Higher mortgage rates quietly changed the math on one of the most argued questions in personal finance. If you’re in tech, with a mortgage, RSUs, and real money to deploy, the answer isn’t as obvious…

Spotify Website

Speakers: Amy WallsHostJohn JagageHost

Top entities: Federal Deposit Insurance Corporation×2 Cambridge Investment Research×2 Cambridge Investment Research, Inc.Restricted stock 401(k)

Show signals: SuitabilitySafeBiasNot political

How Higher Rates Change the Math1:33 – 3:08

J

John JagageHost

1:33

Okay.

A

1:34

And the reason this question is even back on the table is because the math has changed.

J

John JagageHost

1:39

Yeah.

A

1:40

Right? A few years ago, it was easy.

A

1:42

Rates are so low.

A

1:44

What's the point? Furthering this answer, paying down your mortgage is a guaranteed return equal to your rate.

J

John JagageHost

1:53

Yeah.

A

1:54

There's no volatility.

A

1:55

There's no guessing.

A

1:57

You know whatever your rate is.

A

1:59

That's what you're making by paying it down.

A

2:01

And so when mortgage rates were sitting at around 3% or even lower, that guaranteed return was easy to beat by investing.

A

2:08

The bar was so low.

A

2:11

But when we've got rates at 6%, even 7%, where a lot of you are right now, if you bought a house recently, that bar is a lot higher, right, Jag? You recently bought a house.

A

2:23

That's why it's changed for you.

J

John JagageHost

2:26

Absolutely.

J

John JagageHost

2:27

In our previous house, we refinanced during COVID to like two something percent.

J

John JagageHost

2:31

In our new house, I think it's around six or seven.

J

John JagageHost

2:33

Again, my wife knows the exact number.

J

John JagageHost

2:34

I don't, but that's the idea.

A

2:37

So you're right.

A

2:39

And so because of these higher rates, your investments need to consistently clear it over time to come out ahead.

A

2:47

So like you said, it's because things have changed.

A

2:51

If someone's looking at this because they bought a house, they've changed these things.

A

2:56

um so that's why it's back it's not because people have gotten confused or forgotten it's back because the ground genuinely shifted under that settled decision and so it's all going to depend on your numbers and also how you're wired

Federal Deposit Insurance CorporationGovernment OrganizationFederal institution
93%2 mentions
Cambridge Investment ResearchCompanyFinancial services and investments company
79%2 mentions
Cambridge Investment Research, Inc.CompanyCompany
64%1 mention
Restricted stockEntity
50%1 mention
401(k)Entity
36%1 mention
Maslow's hierarchy of needsEntity
21%2 mentions
Financial Industry Regulatory AuthorityGovernment OrganizationFederal agency
7%1 mention

Personal FinanceFinance
Investment Risk ManagementFinance > Investing
Personal Income Tax PlanningFinance > Taxation
Homeownership FinanceReal Estate > Residential Real Estate
Mortgage Payoff Versus InvestingFinance > Personal Finance > Debt Management
Mortgage Interest and Principal RepaymentReal Estate > Residential Real Estate > Homeownership Finance
High-Rate Mortgage Paydown DecisionReal Estate > Residential Real Estate > Homeownership Finance > Mortgage Interest and Principal Repayment
Liquidity and Diversification PlanningFinance > Investing > Investment Risk Management
After-Tax Return Comparison for Mortgage PaydownFinance > Taxation > Personal Income Tax Planning
Restricted Stock Units and Windfall PlanningBusiness > Compensation > Equity Compensation
CompensationBusiness
Equity CompensationBusiness > Compensation
Debt ManagementFinance > Personal Finance
InvestingFinance
Residential Real EstateReal Estate
TaxationFinance
Business
Finance
Real Estate

How Higher Rates Change the Math1:33 – 3:08

J

John JagageHost

1:33

Okay.

A

1:34

And the reason this question is even back on the table is because the math has changed.

J

John JagageHost

1:39

Yeah.

A

1:40

Right? A few years ago, it was easy.

A

1:42

Rates are so low.

A

1:44

What's the point? Furthering this answer, paying down your mortgage is a guaranteed return equal to your rate.

J

John JagageHost

1:53

Yeah.

A

1:54

There's no volatility.

A

1:55

There's no guessing.

A

1:57

You know whatever your rate is.

A

1:59

That's what you're making by paying it down.

A

2:01

And so when mortgage rates were sitting at around 3% or even lower, that guaranteed return was easy to beat by investing.

A

2:08

The bar was so low.

A

2:11

But when we've got rates at 6%, even 7%, where a lot of you are right now, if you bought a house recently, that bar is a lot higher, right, Jag? You recently bought a house.

A

2:23

That's why it's changed for you.

J

John JagageHost

2:26

Absolutely.

J

John JagageHost

2:27

In our previous house, we refinanced during COVID to like two something percent.

J

John JagageHost

2:31

In our new house, I think it's around six or seven.

J

John JagageHost

2:33

Again, my wife knows the exact number.

J

John JagageHost

2:34

I don't, but that's the idea.

A

2:37

So you're right.

A

2:39

And so because of these higher rates, your investments need to consistently clear it over time to come out ahead.

A

2:47

So like you said, it's because things have changed.

A

2:51

If someone's looking at this because they bought a house, they've changed these things.

A

2:56

um so that's why it's back it's not because people have gotten confused or forgotten it's back because the ground genuinely shifted under that settled decision and so it's all going to depend on your numbers and also how you're wired

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