Mortgage delinquencies are rising: How to pay off the loan

According to data from the Mortgage Bankers Association, mortgage loan delinquencies on 1-to-4-unit homes rose 38 basis points year over year. High inflation and mortgage rates may strain Americans' ability to pay off their mortgage loans, so what are some of the best ways to do so?

University of Pennsylvania Wharton School Professor of Finance Michael Roberts joins Wealth! to discuss the rise in mortgage delinquency rates and how Americans can pay down their mortgages.

Roberts outlines some of the first steps in getting mortgages under control: "First, what I would do is I'd rank my debt by cost because we need to think about paying off a mortgage in a broader context. So think about all the debt you have: credit card, auto loans, student loan, as well as your mortgage and rank it from high to low... The second thing you need to do is figure out what you can earn safely on an after-tax basis in terms of investing. Because what we're really thinking about is we're taking every extra dollar and asking, should I use this to pay down debt or should I invest it?"

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This post was written by Nicholas Jacobino