No. of Recommendations: 0
Hello all,

I read some of the previous posts on the pros and cons of paying extra to the mortgage, but I wondering if anyone would give me some advice on my specific scenario.

My wife and I are seeking input on the most efficient way to escape from our upside down condo, purchased at the peak of the Boston market in 2005. We would like be able to move to a different school system before our 19 month old starts school; so we are looking at trying to sell the condo in 2013. My current guess of the condo's worth is between 225-255k. Zillow says 255000, but I think that is optimistic.

We have the following debts and assets:

Debts Rate Amount
1st Mortgage, 30 year fixed 5.75 $220207
2nd Mortgage, interest only family loan 4.19 $44850
Student Debt 3.25 $10724

Short Term E-fund $7000
Long Term E-Fund (Roth IRA contributions) $51000
Retirement Accounts $185000

My wife and I have previously primarily focused on increasing our retirement accounts. We are now considering adjusting our retirement contributions down so that we continue to max out the Roths and get our 401k matches, but can pay more on the mortgage. My thinking is that we need to pay down the principal significantly in order to be able to sell, and the rate of return on the mortgage is greater than I can get in a savings account. Good idea, bad idea, other suggestions? Ask if more info is needed.
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