No. of Recommendations: 2
I'd hate to have used up most of my money prepaying my mortgage and then have whopping unexpected medical expenses and have to take out home equity loan or refinance my house from a hospital bed with tubes sticking out of every available orifice.
My effective rate on the mortgage is lower because of the itemizing on Schedule A with deduction of mortgage interest. It is quite easy to get the a better yield from munis guaranteed by the taxing power of my state than the mortgage interest--and in an emergency I'd rather risk selling shorter term high quality munis than try to refinancee my house or take out a loan based on it.
Just my 2c. Chris
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