Old question, but if you havenâ€™t made the move yet here is a thought. Mortgage rates are lower than they have been in the last 50 years if not longer. They will not stay here forever, they WILL go up, it is only a matter of time. If you stay liquid, keep the amount you have that exceeds the 20% in a savings account, someday soon you can arbitrage the interest rate. Youâ€™ll be able to buy a CD that pays a higher rate than you are paying on the mortgage, that will feel nifty if your lender helps pay off your mortgage.
Accrued interest does the opposite of amortization and if you compare the two you will be surprised at what you discover, try it.
Also, money locked in equity is harder to get out in case of an emergency or tragedy, when you need liquidity the most is when a lender canâ€™t help, one of lifeâ€™s ironies.
NMLS # 6395
Financing Kentucky One Home at a Time