Mortgage payoff question

[amarowsky]

The loss is on paper until you sell, which by that time could become a profit.

To me it's a no brainer to pay off the condo with cash savings and then use the proceeds to either cover your existing mortgage payment or roll into another investment property.

This is similar to my "end-game" retirement as I plan to pay off my current house in less than 5 years (I'll be 42), buy a second home in the poconos and "retire" there (at retirement age) while renting out the first house to supplement retirement income.

2nd this idea.

[Gailete]

I don't understand why you are holding onto over 200K in a 1% account when you owe $160K at 4.5%. Pay it off and then you will not only have the condo free and clear except for taxes and incidentals, you should have enough to pay for health insurance through Obamacare so that you won't be getting huge medical bills if that is your only reason for keeping that much money handy. Unless you have someone in the family with huge medical problems, you don't even need a fraction of that money is easily accessible cash.

My husband and I are both chronically ill and we don't even begin to incur those kinds of medical bills, even if I didn't have Medicare/supplement which the two cost me about $300/month.

We have a rental property too but only had a 15 year mortgage on it with 16 months left to pay and boy am I getting excited! It is part of our long term 'retirement' incomes stream. So since you can, get yours paid off, put away any non-covered expenses for it, get your family some health insurance -- and yes I know how expensive it can be for high earners. And then you have the rest to invest in retirement, etc. and get the rest of that money out of 1% bank accounts!