That’s the way I see it. THis strategy, as I see had more merit before electronic accounts. Now if you are computer literate you should be earning 5% or better by using a sweep account into a high yield money market account or 4% or better in your checking account. With these accounts your cash is never really dormant. Whether or not the immediate payment toward the MOrtgage of 6% or higher can offset by fees etc I don’t know. Additionally If all of my purchases are now going against my line of credit how does the tx deduciton play into that.
Again this is hurt by the fact that right now I use a variety of 0% credit card offers in conjunction with points, miles bonuses etc. SO this diminishes many of the potential advantages.
But here is the wild card. I study this stuff and pay attention to it. I proactively look for credit card offers, car loans, leasing rates etc. What if I were the average JOE who doesn’t do this. Could someone like this benefit from a well contructed cash mangement/ mmortgage management plan that had him paying down his debt and seeing the light at the end of the tunnel by paying down his mortage. Yeah, I could se some value to that.
Whether this is the most opportunistic way, that is the unknown. I would like to see some data or hear from someone using the system.
