I think you need more of a spread than that, but I also think that spread may be coming. If you can secure a 5.5% mortgage and invest at 6.5% when the rates go up, you may be able to make yourself $1000 per $100K mortgage, assuming no closing costs. Nice if you could do that with $400K-$500K.farmerEd said:Anyone notice you can now borrow money for 30 years for less than you can get on a 5 year CD? Its getting so I am actually thinking 'bout taking out a mortgage and plunking the money in the bank.
Laurence said:ooops, this train left the station in another thread.
I think if you are in accumulation phase, and you have locked in a low mortgage rate and love the house, long time horizon etc. and you see CD rates on the rise, setting up a CD ladder with excess cash to "beat the spread" rather than paying off the mortgage early could make sense, since volatility is latin to a CD. But I dunno about once you've retired. But again, we should find the link to that other thread, good arguments made on both sides.