I am calling myself FIRE'd July 1, and I was originally planning to keep our mortgage. Mortgage details: 5/1 ARM at 2.38%, and it will adjust in 3.5 years. That is about the time I plan to relocate, so I can downsize, end the mortgage, and pay cash for the next house. If I miss the adjustment by a year, no big deal.
This plan is based on keeping ~ $100k available to pay off the mortgage in 4 years. Given the short investment period, is it reasonable to assume I can earn more than the mortgage interest through investment without risking the principal I will need? On paper, I should be able to net 5-7%, but it has been a while since a stock crash, and the next one could easily fall inside my investment horizon.
Is it worth the extra bookkeeping to keep the mortgage? I will be using ACA for health insurance, and having lower expenses would be a small advantage. "Hiding" the 100k by paying off the house may help my kid qualify for more college aid, to boot. I have the cash available today.