You’re paying $70k in “non-deductible” interest in exchange for less deductible interest. 

If you have no desire to actively pursue other investments where you make more than a 2.8% return, then by all means pay it off faster.TYFYS and best of luck!

Another option is to invest in the market instead of paying down a mortgage.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

When you pay off a mortgage you pay the interest for all the years you didn't own the house?!?

But, know what you want to accomplish beforehand.Creative Finance is a great way to buy properties when done properly and lawfully. 

The tenant was paying rent to the previous owner but hasn't been paying rent for a while since the property was foreclosed and sold to the bank.

My mortgage increased earlier this year as my home owners insurance went up due to the company closing and my escrow didn’t have enough to make up the difference so I’m kind of pay check to pay check right now.

Hardly anyone can prep properly, mask or dropcloth properly, cut in around trim and windows, get even coverage, etc. 

If the new owner pays on the loan its not "equity skimming" from what I understand of it.