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In fact the opposite is true. My mortgage is 2.125% and I have no motivation to pay that off because of rates spiking upward which gives me a better cash return
by fred_is_fred 3y ago
In fact the opposite is true. My mortgage is 2.125% and I have no motivation to pay that off because of rates spiking upward which gives me a better cash return than 2.125%.
- ryandrake 3y agoIf I could, I would pay off my 7.075% mortgage this minute. That's equivalent to a 7.075% guaranteed risk-free return, which I will not get on any other investment.
- _ea1k 3y agoI think there's some of both. Plenty of people with low interest rates have little motivation for payoff. But if you are moving right now for any reason, you aren't likely to be taking on more debt in the process. There's a pretty strong incentive to do what it takes to get debt to or near zero.