Mortgage Math

Is It Better to Pay Off Your Mortgage or Keep Cash? A Practical Framework

Published on October 25, 2024

A split image showing a house on one side and a liquid savings account on the other, representing the choice between paying off a mortgage or keeping cash.

It’s a classic financial debate: use extra cash to pay down your mortgage, or invest it elsewhere? This article argues you don’t have to choose. A HELOC-based strategy allows you to use your cash to reduce interest (effectively "earning" your mortgage rate) while keeping it fully liquid and accessible for emergencies or opportunities.

The Cost of Illiquid Home Equity

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The Opportunity Cost of a Low-Yield Savings Account

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The HELOC Method: Earning a Return on Your Emergency Fund

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Comparing Returns: Mortgage Interest vs. Market Gains

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A Framework for Making the Right Decision for You

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Educational only, not financial advice. Estimates vary by spending patterns and lender terms.