Should I pull my CDs out?

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Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 10:24 am

I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.

Chuck107
Posts: 210
Joined: Tue Sep 04, 2012 11:47 pm

Re: Should I pull my CDs out?

Post by Chuck107 » Thu May 21, 2020 10:29 am

Can't you also wait till the CD's mature and then decide if you want to pay off the mortgage?

GMT-8
Posts: 142
Joined: Fri Mar 26, 2010 5:11 pm

Re: Should I pull my CDs out?

Post by GMT-8 » Thu May 21, 2020 11:27 am

Don’t worry, be happy. Shake it off. No one can tell you what inflation May or May Not come.

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Oak&Elm
Posts: 469
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Location: Undisclosed Lake, MN

Re: Should I pull my CDs out?

Post by Oak&Elm » Thu May 21, 2020 11:39 am

Just thinking out loud... if I had 300k in the bank and needed 300k to buy a house maybe I should cash the CD's and pay cash on the house, I would probably save 10-12k in initial mortgage expenses alone. With no mortgage payment I could quickly replace my cash... that's just how I think.

cashmoney
Posts: 353
Joined: Thu Jun 29, 2017 11:15 pm

Re: Should I pull my CDs out?

Post by cashmoney » Thu May 21, 2020 11:59 am

LifeExplorer wrote:
Thu May 21, 2020 10:24 am
I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.


I would first approach the bank to see if they are allowing penalty free CD withdraws due to the pandemic .Some banks and CU like Navy Federal are advertising it and others you have to ask.There is a discussion about this on https://www.depositaccounts.com/blog/20 ... omers.html

MathWizard
Posts: 4170
Joined: Tue Jul 26, 2011 1:35 pm

Re: Should I pull my CDs out?

Post by MathWizard » Thu May 21, 2020 12:04 pm

You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)

FoolStreet
Posts: 982
Joined: Fri Sep 07, 2012 12:18 am

Re: Should I pull my CDs out?

Post by FoolStreet » Thu May 21, 2020 12:09 pm

Just curious, but what makes you think it will appreciate at 5% per year?

Retired 2017
Posts: 12
Joined: Wed Oct 16, 2019 1:19 pm

Re: Should I pull my CDs out?

Post by Retired 2017 » Thu May 21, 2020 1:00 pm

I assume your AA has your cash and CDs at about 5-10 % with the Stocks and bonds making up the rest I would look to maintain maybe 2 yrs living expenses in cash. Use the rest of the cash to buy the house. Keep the CDs until maturity then decide what you want do. Your living expenses change when you buy a house. Things like Property taxes, Home owners association fees, and home maintenance and mortgage payments all affect the living expenses. Don't look at your house as an investment.

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 2:11 pm

FoolStreet wrote:
Thu May 21, 2020 12:09 pm
Just curious, but what makes you think it will appreciate at 5% per year?
I have checked the history of the property. 7-8% is the average for the past 20 years. I guesstimate 5% to be conservative.

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 2:29 pm

MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
You would use the MM account for paying off the mortgage?

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 2:32 pm

MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
The point of getting the mortgage is that borrowing is cheap right now. The land value appreciation alone would offset the interest cost.

If I can find another investment for my cash, it would even better.

mailman781
Posts: 52
Joined: Fri Dec 07, 2018 3:38 pm

Re: Should I pull my CDs out?

Post by mailman781 » Thu May 21, 2020 2:57 pm

Oak&Elm wrote:
Thu May 21, 2020 11:39 am
Just thinking out loud... if I had 300k in the bank and needed 300k to buy a house maybe I should cash the CD's and pay cash on the house, I would probably save 10-12k in initial mortgage expenses alone. With no mortgage payment I could quickly replace my cash... that's just how I think.
We think alike.

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 3:00 pm

Oak&Elm wrote:
Thu May 21, 2020 11:39 am
Just thinking out loud... if I had 300k in the bank and needed 300k to buy a house maybe I should cash the CD's and pay cash on the house, I would probably save 10-12k in initial mortgage expenses alone. With no mortgage payment I could quickly replace my cash... that's just how I think.
My CD rates are almost the same as the mortgage rate. Essentially I am borrowing for free to buy an appreciating property.

If I can find a better investment for the CDs, that would be even better, no? Things like QQQ and MUB.

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William Million
Posts: 676
Joined: Wed May 05, 2010 4:41 am
Location: A Deep Mountain

Re: Should I pull my CDs out?

Post by William Million » Thu May 21, 2020 9:14 pm

LifeExplorer wrote:
Thu May 21, 2020 3:00 pm
Oak&Elm wrote:
Thu May 21, 2020 11:39 am
Just thinking out loud... if I had 300k in the bank and needed 300k to buy a house maybe I should cash the CD's and pay cash on the house, I would probably save 10-12k in initial mortgage expenses alone. With no mortgage payment I could quickly replace my cash... that's just how I think.
My CD rates are almost the same as the mortgage rate. Essentially I am borrowing for free to buy an appreciating property.

If I can find a better investment for the CDs, that would be even better, no? Things like QQQ and MUB.
Over 2% FDIC guaranteed is an awfully good fixed income investment, at the moment. I'm uneasily assuming the risk of short term bonds right now to get close to that. On the other hand, if you want to increase your percentage of equities, that's another thing.

MathWizard
Posts: 4170
Joined: Tue Jul 26, 2011 1:35 pm

Re: Should I pull my CDs out?

Post by MathWizard » Thu May 21, 2020 9:54 pm

LifeExplorer wrote:
Thu May 21, 2020 2:29 pm
MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
You would use the MM account for paying off the mortgage?
I would not have the mortgage in the first place and avoid some of the closing costs.
That means coming up with the $300K, so is it from CDs with EWP or from MM.

One year's interest on $300K of CDs earning an average 2.4% and is $7.2K, so a 6 month interest early withdrawal penalty
is $3.6 K.

The MM does not have an early withdrawal penalty, and likely has a lower interest rate. If you have 5 years of living expenses
plus more, it would seem that you have $300K in MM. Without a martgage payment you would be able te replenish the MM
fairly quickly.

It would seem that you come out at least $3.6K ahead not taking the EWP on the CDs.

MathWizard
Posts: 4170
Joined: Tue Jul 26, 2011 1:35 pm

Re: Should I pull my CDs out?

Post by MathWizard » Thu May 21, 2020 10:00 pm

LifeExplorer wrote:
Thu May 21, 2020 2:32 pm
MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
The point of getting the mortgage is that borrowing is cheap right now. The land value appreciation alone would offset the interest cost.

If I can find another investment for my cash, it would even better.
So you essentially using the mortgage as an investment loan on land you hope will appreciate.
Unless you are getting something from the land, you will be paying property tax in addition to interest
while you wait for the land to appreciate.

This is a lot of money to tie up in an illiquid asset. I can sell my mutual fund investment at any time. No so with land.

You asked which option I would choose if I were planning to buy the land. Best of luck with whatever you choose.

User avatar
Noobvestor
Posts: 5579
Joined: Mon Aug 23, 2010 1:09 am

Re: Should I pull my CDs out?

Post by Noobvestor » Thu May 21, 2020 10:15 pm

FoolStreet wrote:
Thu May 21, 2020 12:09 pm
Just curious, but what makes you think it will appreciate at 5% per year?
+1

Any expectation of appreciation on real estate is iffy at the best of times, but now of all times, I wouldn't factor that in at all. It's either a place you want to live in or a place you want to rent out - long-term, individual properties are not investments (either a home or a job).
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 10:21 pm

Noobvestor wrote:
Thu May 21, 2020 10:15 pm
FoolStreet wrote:
Thu May 21, 2020 12:09 pm
Just curious, but what makes you think it will appreciate at 5% per year?
+1

Any expectation of appreciation on real estate is iffy at the best of times, but now of all times, I wouldn't factor that in at all. It's either a place you want to live in or a place you want to rent out - long-term, individual properties are not investments (either a home or a job).
I know past history doesn’t speak for the future but I have checked 20 years of property appreciation in that area.

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Thu May 21, 2020 10:35 pm

MathWizard wrote:
Thu May 21, 2020 10:00 pm
LifeExplorer wrote:
Thu May 21, 2020 2:32 pm
MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
The point of getting the mortgage is that borrowing is cheap right now. The land value appreciation alone would offset the interest cost.

If I can find another investment for my cash, it would even better.
So you essentially using the mortgage as an investment loan on land you hope will appreciate.
Unless you are getting something from the land, you will be paying property tax in addition to interest
while you wait for the land to appreciate.

This is a lot of money to tie up in an illiquid asset. I can sell my mutual fund investment at any time. No so with land.

You asked which option I would choose if I were planning to buy the land. Best of luck with whatever you choose.
I do plan to live there at least a few years and rent it out if I move.

That’s not the only money I have. I also have plenty of liquid assets. My issue is that I have too much in cash, which is my motivation to buy a property.

annu
Posts: 699
Joined: Mon Nov 04, 2019 7:55 pm

Re: Should I pull my CDs out?

Post by annu » Thu May 21, 2020 10:58 pm

LifeExplorer wrote:
Thu May 21, 2020 10:35 pm
MathWizard wrote:
Thu May 21, 2020 10:00 pm
LifeExplorer wrote:
Thu May 21, 2020 2:32 pm
MathWizard wrote:
Thu May 21, 2020 12:04 pm
You must have over $300K in the Money Market.

Myself, if the early withdrawal penalty is still in effect,
I would use money from the Money Market, which is likely earning less than the CDs,
and cash CDs as I needed them. (You don't have a single $300K CD I assume.)
The point of getting the mortgage is that borrowing is cheap right now. The land value appreciation alone would offset the interest cost.

If I can find another investment for my cash, it would even better.
So you essentially using the mortgage as an investment loan on land you hope will appreciate.
Unless you are getting something from the land, you will be paying property tax in addition to interest
while you wait for the land to appreciate.

This is a lot of money to tie up in an illiquid asset. I can sell my mutual fund investment at any time. No so with land.

You asked which option I would choose if I were planning to buy the land. Best of luck with whatever you choose.
I do plan to live there at least a few years and rent it out if I move.

That’s not the only money I have. I also have plenty of liquid assets. My issue is that I have too much in cash, which is my motivation to buy a property.
We were offered 2.5 @ 15 year with 4k in closing costs. If your closing costs are low as well, I personally would take mortgage, and wait a few months, especially after election, probability of things getting interesting is high.
On the other hand, if I was paying more than 1 to 2% on closing cost, would pay cash for 90% and take mortgage for rest. Later on do a refi with cash out, I have seen prices from 2.35% or so for that, and open a margin account with my brokerage if possible, so in case I want to buy, I am able to and have backup option of refi/washout if needed.
Only reason I am suggestion refi, as heloc rates as far as I have seen are very high, 4% +.

runswithscissors
Posts: 33
Joined: Mon Sep 23, 2019 2:25 am

Re: Should I pull my CDs out?

Post by runswithscissors » Fri May 22, 2020 1:28 am

LifeExplorer wrote:
Thu May 21, 2020 10:21 pm
Noobvestor wrote:
Thu May 21, 2020 10:15 pm
FoolStreet wrote:
Thu May 21, 2020 12:09 pm
Just curious, but what makes you think it will appreciate at 5% per year?
+1

Any expectation of appreciation on real estate is iffy at the best of times, but now of all times, I wouldn't factor that in at all. It's either a place you want to live in or a place you want to rent out - long-term, individual properties are not investments (either a home or a job).
I know past history doesn’t speak for the future but I have checked 20 years of property appreciation in that area.
In my area the appreciation from 2000 to 2020 is quite robust (about 7% year appreciation nominal). But if I go back to 1990 and look at how it performed over the last 30 years it drops to only 3.8% nominal. That's because prices were actually higher in 1990 than in 2000. Yes that is flat or depreciating prices over an entire decade. It's amazing how much the annual appreciation rate changes when you change the starting year. So I wouldn't count on any appreciation whatsoever and perhaps even factor in a drop in value in the coming years. Although if you can hang on for 20 years it's likely there will be a gain. I am doubtful that it will be 5% a year though.

Valuethinker
Posts: 40259
Joined: Fri May 11, 2007 11:07 am

Re: Should I pull my CDs out?

Post by Valuethinker » Fri May 22, 2020 2:58 am

LifeExplorer wrote:
Thu May 21, 2020 10:24 am
I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.
Hello.

A mortgage is protection against inflation. Basically a fixed rate debt which is being repaid in the future with nominal dollars, i.e. the higher the inflation, the less you repay.

I would hold onto the CDs. Interest rates are doing nothing but dropping, worldwide, for at least the next year or so whilst we measure the size and speed of the Covid-19 recovery.

BTW I would not count on property price appreciation. Not with the condition of the world economy right now, at least.

So:

- hold on to the CD
- when it matures, think about repaying the mortgage
- don't buy stocks with the CDs, expecting that you will automatically get higher returns. You might get negative returns

grettman
Posts: 567
Joined: Mon Sep 29, 2014 1:47 pm

Re: Should I pull my CDs out?

Post by grettman » Fri May 22, 2020 6:03 am

Have you asked if they have lifted the early withdrawal penalty? Navy Credit Union, for instance, has waived that penalty because of COVID.

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Fri May 22, 2020 8:51 am

Valuethinker wrote:
Fri May 22, 2020 2:58 am
Hello.

A mortgage is protection against inflation. Basically a fixed rate debt which is being repaid in the future with nominal dollars, i.e. the higher the inflation, the less you repay.

I would hold onto the CDs. Interest rates are doing nothing but dropping, worldwide, for at least the next year or so whilst we measure the size and speed of the Covid-19 recovery.

BTW I would not count on property price appreciation. Not with the condition of the world economy right now, at least.

So:

- hold on to the CD
- when it matures, think about repaying the mortgage
- don't buy stocks with the CDs, expecting that you will automatically get higher returns. You might get negative returns
Another idea is to get a 5/1 ARM which will bring the rate down to 2%, lower than my CD rates.

AK62
Posts: 29
Joined: Sun Aug 25, 2019 12:14 pm

Re: Should I pull my CDs out?

Post by AK62 » Fri May 22, 2020 3:11 pm

Valuethinker wrote:
Fri May 22, 2020 2:58 am
LifeExplorer wrote:
Thu May 21, 2020 10:24 am
I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.
Hello.

A mortgage is protection against inflation. Basically a fixed rate debt which is being repaid in the future with nominal dollars, i.e. the higher the inflation, the less you repay.

I would hold onto the CDs. Interest rates are doing nothing but dropping, worldwide, for at least the next year or so whilst we measure the size and speed of the Covid-19 recovery.

BTW I would not count on property price appreciation. Not with the condition of the world economy right now, at least.

So:

- hold on to the CD
- when it matures, think about repaying the mortgage
- don't buy stocks with the CDs, expecting that you will automatically get higher returns. You might get negative returns
Good advice. Do this.

windpig
Posts: 25
Joined: Sun Jun 16, 2019 8:58 am

Re: Should I pull my CDs out?

Post by windpig » Fri May 22, 2020 5:07 pm

AK62 wrote:
Fri May 22, 2020 3:11 pm
Valuethinker wrote:
Fri May 22, 2020 2:58 am
LifeExplorer wrote:
Thu May 21, 2020 10:24 am
I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.
Hello.

A mortgage is protection against inflation. Basically a fixed rate debt which is being repaid in the future with nominal dollars, i.e. the higher the inflation, the less you repay.

I would hold onto the CDs. Interest rates are doing nothing but dropping, worldwide, for at least the next year or so whilst we measure the size and speed of the Covid-19 recovery.

BTW I would not count on property price appreciation. Not with the condition of the world economy right now, at least.

So:

- hold on to the CD
- when it matures, think about repaying the mortgage
- don't buy stocks with the CDs, expecting that you will automatically get higher returns. You might get negative returns
Good advice. Do this.
+1

Topic Author
LifeExplorer
Posts: 26
Joined: Sun Apr 19, 2020 9:08 pm

Re: Should I pull my CDs out?

Post by LifeExplorer » Fri May 22, 2020 6:16 pm

Valuethinker wrote:
Fri May 22, 2020 2:58 am
LifeExplorer wrote:
Thu May 21, 2020 10:24 am
I am not sure what to do. I would highly appreciate some ideas from you guys.

Situation
1. I have $300K in CDs currently earning 2.3-2.5% and maturing in 2 years. There's an early-withdrawal penalty of 6-month's interest.
2. I applied for and was approved for a $300K mortgage to purchase a property at 2.5% for 15 years. The property is expected to appreciate at 5% each year.
3. I have enough cash in a Money Market account to cover downpayment, repair, and cost of living for 5 years even if I lose my job.

Here are some choices I can think of:
1. Should I move my at least half of the CDs to stocks/ETF like QQQ or MUB?
2. Should I use the CDs to pay down some part of the mortgage?
3. Should I use the CDs to buy the property outright, not incurring the debt (mortgage)?
4. Should I do nothing and let the CDs mature, not incurring the penalty?

I am deeply worried about inflation. 2.3% interest rate seems to be little protection against inflation.
Hello.

A mortgage is protection against inflation. Basically a fixed rate debt which is being repaid in the future with nominal dollars, i.e. the higher the inflation, the less you repay.

I would hold onto the CDs. Interest rates are doing nothing but dropping, worldwide, for at least the next year or so whilst we measure the size and speed of the Covid-19 recovery.

BTW I would not count on property price appreciation. Not with the condition of the world economy right now, at least.

So:

- hold on to the CD
- when it matures, think about repaying the mortgage
- don't buy stocks with the CDs, expecting that you will automatically get higher returns. You might get negative returns
Thanks. I will do this. I will get a 5/1 ARM and pay it off within 5 years as my CDs mature.

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