The I bond interest rate could easily go down. Maximum I-bond investment is $30K/year. What will you do with the other $570K?
How does your plan stack up assuming 4.75% CD, taxable? If the bank goes under while holding your loan, what happens? Won’t they call it?
The way I see it, you can pay 6% interest on a morgage and earn 4.75% interest on a CD, so you’re worse off getting the mortgage. Assume the tax writeoff for the mortgage interest negates the tax due on the interest earned. I don’t see any way the banking system lets you borrow at a lower rate than you can earn, unless you take on significantly higher risk. It works the opposite way – at a low risk, your earnings on a risk-free investment are less than the payments. That’s how banks make their money.
I look forward to a reply. I may have missed something.
