Me: My mortgage is at 4.875%. My car loan is even lower at 3.75%. Vanguard Prime Money-Market Account pays ~5.1%. For me, it makes more sense to leave my money in the Vanguard MMA instead of paying off the mortgage early.

Of course, if interest rates reverse, and the MMA earns less than the mortgage, then I can shift money from the MMA to pay ahead on the mortgage.

]]>I get that you are paying down your debt, which is good…and that the tax benefits reduce your effective interest rate, which is also good…but what is the reasoning/logic/math behind how paying interest becomes a rate of return?

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