Consider the strategy known as mortgage recasting or rate arbitrage on of those options in order to pay down your current mortgage. What you do with the liquidity from your mortgage debt is what really matters — just don’t buy jet skis or other doodads with the money. Mortgage debt is how most people can afford homeownership, whether or not they are responsible enough to commit to a 30-year loan or can afford the monthly payment. The unavoidability of mortgage debt is one of the myths I blindly followed to buy my first primary residence in 2009. Mortgage rate arbitrage turns the tables on this situation.

Source: Forbes May 07, 2018 12:00 UTC