I have $26,000 left on my mortgage note (30 years @5.75%). It was originally a vacation home purchase (hence the larger interest rate), but I'm downsizing from DC and moving up north to begin FIRE within the next 12 months. We began aggressively paying it down after I started reading MMM so in August/September, the balance was ~$75K. This year, I maxed out my Roth @$5500, TSP around $17000, both kids VA 529s at $4000 each and I'm finalizing wife's solo 401K contributions so that will be maxed at $17,500 + about $7000 for the employer contribution portion and to her traditional IRA @$5500 (although I'm not sure if she will get a deduction based on our income.)
Anyway, we had some really good momentum going paying down the mortgage...much of it is probably mental, but the interest rate is also high compared to today's rates and I have to carry a mandatory insurance policy which is also high because it's a vacation place ($700/year). Because we're topping off all the IRA's and 529's, the normal excess disposable income we have of $10K+/month won't be available to apply to the mortgage in Jan/Feb and March
The other day I received a USAA convenience check....1.9% interest until January 2016 with 3% or $75 balance transfer fee (whichever is LESS (somewhat unusual, but USAA is pretty good like that) up to 95% of my credit card limit which is $27K. So I figured I could pay off the note with the convenience checks and even it took me a year; the total between CC interest and balance transfer fee (about $340) would still be less than interest from note + the mandatory insurance policy which I intend to drop. Also, I don't like escrowing taxes so it would be nice to have that money available as well. Has anyone ever done this? What are negative effects? Temporary hit to credit? I'm very discplined about debt so don't have any hesitation and don't mind if my credit score takes a hit because I don't intend to borrow money for another mortgage or anything else like that.