You seemed to have missed the point completely AND do not understand that ‘banks’ usually do not lend their money for 30 years.
(That’s called lending long and borrowing short which is potential suicide)
It’s not going to happen at the same time.
Most 30yr mortgages are sold into 30yr bonds (MBS)
banks service loans they DO NOT own them.
Everybody who qualifies today can tie up money for 30yrs in 3% range and it is very possible (and likely) that CD rates will be considerably higher at some point, (obviously not today)in the future.
Having accelerated payments on low interest rate debt may prove to have been very foolish.
Banks are not in business to lose money. The fractional reserve banking system and the creation of money is simple yet complex.
The entire economic system is a Ponzi scheme that plods along until something goes wrong and then there is a scramble to put a band aid on the problem.
If mortgage rates were much higher it makes more sense to me to eliminate debt as CD rates are likely to decline.
When rates are low, it is more likely that CD/Bond rates will rise, although not a guarantee.
The system has never been as fragile as it currently is, regardless of what the ‘experts’ and govt are saying.
