Personal finance expert Suze Orman has long been a prominent voice in the world of money management. While much of her advice remains valuable, one particular recommendation – aggressively paying down your mortgage – deserves a fresh look in today’s economic climate. Originally promoted in 2016, this strategy involved making extra mortgage payments to shorten the loan term. But does it still make sense now?
The Original Logic: Why It Worked Then
Orman’s advice stemmed from a time when mortgage rates were significantly higher. In 2016, securing a 6% mortgage was common. In this environment, an extra payment each year could shave years off the loan, saving substantial interest. The math was straightforward: reduce the principal faster, and you pay less overall.
“One of the best ways to pay off your mortgage early is to make just one extra mortgage payment a year,” Orman wrote. “If you are currently paying 6% on your mortgage, one extra mortgage payment a year can change a 30-year mortgage into a 24.7-year mortgage.”
Why the Landscape Has Changed
Today’s financial reality is different. Many homeowners locked in fixed rates before the Federal Reserve began raising interest rates in 2022. Some secured terms as low as 2.7% in late 2020, or 4.5% just before the shift. In these cases, aggressively paying down the mortgage may not be the most efficient use of funds.
Instead, excess cash could generate higher returns in high-yield savings accounts or other investments. As recently as September 2025, Orman herself acknowledged this point, advising against using savings to pay off a low-rate mortgage.
“It makes no sense for you to give up money that’s probably making 4.5%… to pay off a 3.3% mortgage,” she stated.
When Extra Mortgage Payments Still Make Sense
Orman’s advice isn’t entirely outdated. Paying down your mortgage faster can still be advantageous if:
- You have a high interest rate.
- You have no other high-interest debt (credit cards, auto loans).
- You have a solid emergency fund.
- You’re likely to spend excess cash impulsively rather than invest it.
In these situations, reducing your mortgage principal provides a guaranteed return equal to the interest rate, eliminating the risk of market fluctuations. However, for many homeowners with low fixed rates, alternative investments are likely to yield greater long-term gains.
The Bottom Line: Suze Orman’s advice on aggressively paying off your mortgage remains conditionally valuable. Modern financial conditions demand a more nuanced approach – prioritize high-yield investments and savings when rates are low, but accelerate mortgage payments if you have high debt, poor spending habits, or are risk-averse.
