I am in a similar boat, but we are not 4.5 years away from paying down house.In terms of your overall financial gain, you may be better off slugging that money into the market. However, since you live in today's uncertain job market world, I would seriously consider income risk as a factor in your decision.That is to say, I would plan out a lifestyle which allowed you to survive on a substantially reduced income. This would include getting your house paid down to the point where you could live with a reduced income (and a 30 year mortgage on a very low debt). Since you are suggesting that your wife earns 1200 a month, why not shoot for fitting a possible lifestyle into that? Very trim.Using my handy mortgage calculator (I wrote myself thank you very much) you can see that a 30 year loan at 7% interest (my guess at interest rates in a year or two) and a loan amount of 30000 gives a payment of 199 a month. This fits into your 1200 and gives you 1000 to spend on whatever you like. (like eating, gas, electric, and cobra)This guarantees you financial viability with either income pulling the weight.There's my 2 cents, pay down the mortgage to 30,000 then start sinking it into riskier investments (or since you plan on moving anyway, save it up for your new house, and might as well sink it into the existing mortgage since its rate of return is higher than you can get in a money market)
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