Rustico, I think that most people would benefit from paying down (and eventually off) their mortgages.

1) For peace of mind.
2) So they don’t spend the money on something else.
3) Keeps them on a monthly routine they are used to. There’s a comfort level in regularity.

The reason so many people are in trouble today is that they accessed all their equity using the new “innovative” products and spent it all.

Of course, more sophisticated owners/investors who can manage their money well can place their funds in place that return more than the mortgage. Mortgage money is subsidized in many ways so it’s cheap money. You can earn more in other places.

I would not refinance my 5% mortgage unless the interest rates go down. There are cost associated with refinancing. I’d just as well continue to pay it down.

Some business people take risks with their equity money. In a booming economic, the risks are worth taking, but in a recession, even equity millionaires end up on the street. It’s a fact of life.

I’m all for treating the primary residence as a home (consumption) rather than an investment. Any appreciation is gravy when you sell the house.