I have a new 30 year mortgage that I'd like to pay off faster than the term. Here's my tentative plan, and I'd like any/all opinions I can get. I'm paying $50/month extra on the principal and investing the rest of my spare change. At the beginning of each year, I plan to liquidate $600 worth from one of my stocks and pay that on the principal; therefore, having paid equivelant to an extra $100/month. I figure this should cut the term of my mortgage down to about 16 or 17 years, and it should not reduce my tax advantage too badly during the early years. Also, it gives my spare change a chance to grow during the year. My questions are these:
1- What's wrong with this picture?
2- Should I liquidate from my losers, or winner when
the time comes(beginning of the year)?
3- Should I just make the extra payment now, and not
put the money into stocks?
Thanks for any suggestions offered.
Eddie