SpaceCommander wrote:That's exactly what I did. No regrets. Consider a tip from Dave Ramsey: go ahead and pay it off, and if you don't like it, you can always remortgage yourself in the future.
However, the rate might be? Point being, the 3.5% loan is fixed. The interest rate you might earn in the future is not. Once you pay off a 3.5% loan, there is also no assurance you will qualify for another. Funds used to pay off a 3.5% loan today might well be earning quite a bit more in the future. Or not. It's always a calculated risk.
Run the numbers under various scenarios, then do what seems logical. I would simply posit that the odds for a successful arbitrage of that 3.5% loan in the future look good. It wasn't all that long ago that 4% CDs were common.
Source:
http://www.bogleheads.org/forum/viewtopic.php?f=10&t=109784&p=1596332