Count me as one of the risk averse individuals who compressed and paid off my mortgage. Aside from sleeping well at night debt-free, I am very happy to deprive TARP bank, Chase of about the same amount of interest as I paid for my modest house in 2001. Once the tax benefits went away and I switched back to the standard deduction, I accelerated payment even more. One way I looked at it was getting a negative return on my savings in this ZIRP environment vs. a sure thing of not paying 3.8% on prepaid principal. Money placed in equities is at significant risk, but even capital in bonds or bond funds could take large losses if interest rates normalize to accurately reflect risk--especially in an inflationary environment that you claim this mortgage debt hedges against. In adverse conditions one could take a capital loss and still owe the principal. There are other ways to hedge against inflation.

Excessive debt and the mispricing of risk got us into the financial crisis and this led me to eschew debt. I like every one else am seeking yield, but am wary of the financial markets in light of massive corruption and the lack of any willingness to prosecute wrongdoing. So yes, in a functioning market I admit that a 30 year mortgage at under 4% might be a good idea if the funds were to be put to work as you strategize. Not participating is my way of protesting for the time being. If we return to a functioning market and the rule of law, I will consider deploying capital less conservatively.

@Dantzler