> With interest rates around 3% on a 30-year fixed,
3.51% this week, and that's a recent low, so “around 3%” is a stretch.
> tax deductible, you’re actually winding up borrowing at below inflation.
If you assume inflation will soon return to 1990s or earlier levels, maybe; US inflation has been under 2.5% for all but 5 years since 2000, and averaging even lower; you have to be in a pretty high tax bracket for even 3% to get close to breaking even with inflation at those rates, and actual rates are above 3%.
Fair but let’s be very conservative and say 2% inflation and no tax deduction. You’re paying a net of 1.5% for that loan. That’s practically free money no matter how you slice it. You could basically offset it by keeping the cash in a savings account. If you can’t manage to beat 1% ARR you probably should just pay that mortgage off lol
3.51% this week, and that's a recent low, so “around 3%” is a stretch.
> tax deductible, you’re actually winding up borrowing at below inflation.
If you assume inflation will soon return to 1990s or earlier levels, maybe; US inflation has been under 2.5% for all but 5 years since 2000, and averaging even lower; you have to be in a pretty high tax bracket for even 3% to get close to breaking even with inflation at those rates, and actual rates are above 3%.