[Jule]

You left out the most important information, what are the interest rates on those loans?

Also, you need to have a larger emergency fund of 6-8 months, especially in these times.

[Frank]

I would not pay off low interest loans that are below savings account rates.

[Rick]

You probably should do the same thing you did during all the previous “uncertainty”

2024 ongoing multiple regional wars
2023 multiple banks evaporated in a few short weeks
2022 runaway inflation

2021 global supply chains seized up multiple times
2020 the new flu that ended all other flus

[Mitch]

If you were within 3-5 years of FI, I could see the acceleration of payoff of the house and condo which effectively acts like a fixed rate bond and lowers your FI number.

But, you are too far away if you haven’t reached coast fi yet, in my opinion so I would not pull that trigger.

The ONLY way I’d consider the mortgages is if you can contact the servicer and ask if they offer a recast down the road.

Reason being, when we get out of this mess, and times are better perhaps you want to turn back to relentless investing with extra money and if you could recast those notes, at least you
Free up some monthly payment to redirect to investments.

Ultimately, I can tell you from my perspective, I had a chance to do everything you are considering doing with a couple payments from a sale of a business.

And instead I stuck to my investor policy statement which said: never pay off these low interest mortgages (2 of them).

Instead, pile the cash in an after tax brokerage and know the 4% rule can PAY THE MORTGAGES for you in a pinch, but you get the benefit of compounding arbitrage of interest over time.

Long answer and long way of saying no, I wouldn’t if I were you. But I hope the thought exercise is helpful to frame your thinking.

[Jamie]

I wouldn’t use the EF for the loan, but the rest of the plan might make sense if it will bring you peace of mind since you are maxing your retirement accounts.

It isn’t necessary the best financial plan, but I’d probably do the same thing because I would value that flexibility over maximum gains.

[Angela]

Do you also have money set-aside for expenses for the rental like repairs and the like?

[Author]

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