[quote=HLS] . . . If CD rates go back to 5%-8% or higher, it will have been foolish to have accelerated payments to pay off a 3%-4% mortgage.
The unknown is ‘when’
It’s also a matter of responsibility and having something better to do with the cash.
Never underestimate the importance of liquidity/cash.
There’s a big difference between being broke and having debt & having cash earning higher rates
of interest and having debt.[/quote]
Agree. And I also agree with flu if one can HANDLE the larger (or even MUCH larger) debtload without using their socked-away cash every month.
What’s the use of having a cash reserves if one might end up needing to deplete it gradually every month to satisfy their (now huge) debtload?
Why not just keep the lower payment on a lower amt owed, even it IS at a rate <1% than the prevailing mtg rate?
Not saying this is flu's situation as he doesn't appear here to want to take "cash out," just to roll +/- $3400 closing costs into a new mtg.
