Yea, in the current environment with a hypo $400k 2.75% 15 yr. you could make an additional $20 principal payment on the first put and shortening the life to 14 years. You essential trade that $20k for twelve fewer $2700 monthly payments fifteen years from now That’s $32,400 nominal. Purchasing power over the last fifteen years basically a wash. Investments in QQQ or DJIA from 2000 to today, well QQQ is about even so a loser in the scenario, DJIA about even with the savings. Shift the analysis 12 months post 9/11 and $20K in QQQ blows the savings out of the water
So it depends, if you expect the low inflation to continue for fifteen years the a prepayment will be on par with the cost differences in the future. If the inflation doesn’t remain negligible, then the future purchase power loss favors not prepaying.
Essentially continuing a mortgage turns you place into a long term fixed rental were you’re responsible for maintenance but get all upside or downside capital appreciation
