We're 5.5yrs into a 15yr note with a rate somewhere in the high 3% range and are on our way to early payoff as-is. However, I have found a way to payoff the remaining $100k within 11mo by aggressively curtailing elective spending, withdrawing the principal from a Roth IRA, cashing out all corporate stock, and redirecting all contributions to my current non-matched R401(k) to mortgage payoff.
The objective is to pay off the home we are in (home #1), buy home #2, and rent home #1. Rent from #1 will cover most of of #2's mortgage.
The R401(k) contributions will be restored once home #1 is paid off.
Does it make sense to reinvest* about a year of Roth 401(k) contributions and the principal of a small Roth IRA into our mortgage to pay it off so we can rent it and apply the revenue to pay the mortgage of #2?
*I call it "reinvesting" because I believe it's an investment into a rental property, not a primary residence. I count this as portfolio diversification. Please set me straight if I'm wrong or rationalizing.