With the current mortgage interest at a record low. I am thinking about cash-out 500K+ of our paid-off home at ~2.5% interest rate for 15 yr term.
The cash will be on hold for an opportunity to invest (either in the equity market, rental RE, or industrial building...) not sure which one will take a hit first, as I see both the stock market and RE where I live is at an all-time high.
We plan to semi-retire in the next 3 years and I may not qualify for this type of loan in the future when I am no longer employed. And my thinking is investment return should beat the 2.5% interest rate.
We currently have ~1.7M in pre-tax accounts stock/bond/cash. Over 2M in RE rentals net equity, and ~500K in cash saving accounts.
If the market or RE won't crash/correct in the next 3-5 years, I just simply paid off the mortgage again.
What do you think?
Thank you for your time.
The cash will be on hold for an opportunity to invest (either in the equity market, rental RE, or industrial building...) not sure which one will take a hit first, as I see both the stock market and RE where I live is at an all-time high.
We plan to semi-retire in the next 3 years and I may not qualify for this type of loan in the future when I am no longer employed. And my thinking is investment return should beat the 2.5% interest rate.
We currently have ~1.7M in pre-tax accounts stock/bond/cash. Over 2M in RE rentals net equity, and ~500K in cash saving accounts.
If the market or RE won't crash/correct in the next 3-5 years, I just simply paid off the mortgage again.
What do you think?
Thank you for your time.