There's also about 2% in fees so don't neglect that. The best rates are for short, e.g. 3 yr, loans. And you're not going to have a 7% expectation on that $40k cash unless you have no idea how to manage risk. A young man with a mortgage has more in his trading account, but because he has a mortgage, he has to run a certain amount of that like he's 80 years old. Pay off your necessities and you can go full bore growth risk.
Who do you think pulled $100k from their 401k last year and missed doubling that money? I guarantee it was mostly people who had a mortgage and were afraid of losing their homes. Those with a paid off house gave no fucks and got rich off stupid shit like tqqq.
There's also about 2% in fees so don't neglect that. The best rates are for short, e.g. 3 yr, loans. And you're not going to have a 7% expectation on that $40k cash unless you have no idea how to manage risk. A young man with a mortgage has more in his trading account, but because he has a mortgage, he has to run a certain amount of that like he's 80 years old. Pay off your necessities and you can go full bore growth risk.
Who do you think pulled $100k from their 401k last year and missed doubling that money? I guarantee it was mostly people who had a mortgage and were afraid of losing their homes. Those with a paid off house gave no fucks and got rich off stupid shit like tqqq.
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