I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.
Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )
Thoughts? Someone talk some sense into me, please…[/quote]
that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.
ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.
