Millionaires might have fancier homes than most, many times costing millions, but instead of hanging on to the debt of mortgage, it seems many millions opt to pay off their home loans within 10 years.

In fact, according to Public Policy Institute of California, 58 percent of California’s equity millionaires, as of 2020, had successfully paid off their mortgages. Why do millionaire tend to do this? For financial freedom.

The rapid home loan payoffs among millionaires challenge the myth that owning a home, especially in high-cost regions, necessitates decades of mortgage payments. Paying off a mortgage early not only offers the freedom of living in a debt-free home but also paves the way for building substantial wealth, claims financial guru Dave Ramsey.

Ramsey, of Ramsey Solutions, is a personal finance personality, radio show host, author, and businessman. He hosts the nationally syndicated radio program “The Ramsey Show.” He’s written several books, including The New York Times bestseller “The Total Money Makeover,” and hosted a television show on Fox Business from 2007 to 2010.

Eliminating mortgage payments opens up additional financial resources that can be used towards retirement savings and other investment opportunities.

A paid-for house, Is “also a great way to build wealth—getting rid of your house payment leaves you with a ton of extra money each month to save for retirement. In fact, the average millionaire pays off their house in just 10.2 years,” according to Ramsey’s website.

According to Ramsey Solutions, there are steps for the average homeowner to do like the millionaires–and pay off their mortgages.

Consider mortgage refinancing. Refinancing your mortgage to a shorter term or a lower interest rate can lead to substantial savings. While it may require a slightly higher monthly payment, it’s often well worth it in the long run.

You can also consider downsizing our home. Downsizing is a drastic but effective step to reduce your mortgage debt. Selling a larger home and using the proceeds to buy a smaller, more affordable one can lead to significant mortgage savings.

You can also earn extra income and use it for mortgage payments. Also, any additional income, such as bonuses, raises, or gifts, should be funneled directly into paying off your mortgage. Avoid the temptation of increasing your lifestyle expenses and focus on your financial goals.

While looking to pay of mortgage debt is a goal, for many Black people owning a home is still a hurdle. According to the National Association of Realtors, the Black-White homeownership rate gap is the biggest in a decade. The NAR Report found that while the U.S. homeownership rate increased to 65.5 percent in 2021, the rate among Black Americans lags significantly (44 percent), has only increased 0.4 percent in the last 10 years and is nearly 29 percentage points less than white Americans (72.7 percent), representing the largest Black-White homeownership rate gap in a decade.

And, less than 10 percent of Black renters can afford to buy the typical home.

Photo: Dominion Lending Centreshttps://nathanlawrence.ca/mortgage-tips/mortgage-prepayment-mortgage-burning-party/