Answer Of Paying off fixed-rate mortgage early? In this economy? – inflation investing

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Paying off fixed-rate mortgage early? In this economy? – inflation investing

The same inflation and low interest rates that are telling me paying of a low-rate fixed-rate mortgage early is dumb are also telling me that leaving money sitting in a savings account is dumb. But what else to do with money we may want when we sell our house, which may be in a couple of years?




We are considering using a windfall to pay off our 3.75% mortgage early (<50k). Normally, we would invest it, but we are thinking about moving in a few years (maybe at the same time as retiring), and this money, along with the existing equity in our home, would be put toward the down payment of our next home in order to lower monthly expenses in retirement. It seems like the timeline may be too short for investing, and 3.75% is more than we are getting with it sitting in a savings account. We would still have healthy emergency funds and max out our 401k and IRAs. We would invest what we're saving each month by not having a mortgage payment. We don't pay enough in interest at this point to make the mortgage interest deduction a factor. We already bought 10k in Ibonds each this year and 10k to give each other as gifts to deliver later. Any other risk-free short-term (< 2 years) options returning more than 3.75%? Won't someone with a crystal ball tell me if the market will recover in two years or if savings account interest rates will get above 4% (remember those days?)

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