No. of Recommendations: 5
Your post warms the cockles of my heart (whatever that means anyway...)

Thanks for the acknowledgment, and absolutely congratulations on nailing a much better deal!

Take that difference you're "saving" and relentlessly stash it in a better growing investment account (your Mortgage Freedom Account.) Don't let it slide over into other expenses... you WERE budgeted to pay it anyway, and you would have... so don't default on what you WOULD have paid in monthly mortage payments.

Your assignment from here on out;
Do everything you can to build that Mortgage Freedom Account to where it equals and surpasses your mortgage. Pay the monthly savings into it. Pay your tax savings into it. Pay your annual tax refunds (if any) into it. When your appreciated home equity accumulates to the point that it COULD be earning enough in investment returns in a year to equal the costs of a refi, then do a refi to get that cash out, and put THAT into it.

If you do this relentlessly, EVEN THOUGH you refi every 4-6 years (and pay the damn closing costs to some damn broker (or banker or credit unioner, etc.) like me, WITHIN APPROX. 20-25 YEARS you're Mortgage Freedom Account will SURPASS your home mortgage. THAT'S FREEDOM!

Then you'll have;
1) An investment account earning compounded returns outperforming your real estate, AND,
2) Ownership of that slow-growth real estate STILL earning real-estate-speed returns, even if they are slow, AND,
3) Easy, cheap access to your capital equity whenever you actually need it, AND,
4) Significantly reduced lien-ability in your real estate.

OR, you can stick it out to pay down your 30 year loan and get only;
1) full, unleveraged ownership of a lienable (except in JAFO's Great State of Texas!)asset treading water with inflation.

Congrats, my friend... GREAT JOB!

Dave Donhoff
Lic. Mortgage Broker
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