Subject: Re: ot: advice for my nephew
He has a mortgage on his house at 4% rate.
He also has money is a bank with more than mortgage accoumt getting around 4%.
He wants to know if he should pay off the house and also where to invest any cash he has.


1) Very good rate
2) He could get 5%-5.3% at UFB or VIO or Raisin
3a) No. No only No, but HELL no.
3b) Invest? Is he a beginning investor? If so, VASGX (Vanguard LifeStrategy Growth Fund)

4% is a good rate. He should keep it, and when/if rates drop he should refinance. My target was always when the new rate would save me $100/mo in interest (not payment. Interest) then I'd refinance at that new lower rate.