My advice is exactly the opposite. Pay off the mortgage and free up the home equity. Why would want to pay interest on your mortgage in the meantime? (I'm assuming that .6375% is a typo). Ok here is my rationale. You put the 50k towards the 95k mortgage, you still have the same payment, it does not lower. Dad needs help, you do a heloc for 20k. Now you have your 1st mortgage, and a second to pay on. Now your total monthly payments are higher than before you paid down the mortgage. Dad needs more help you tap the HELOC again for say another 10k (the amounts are meaningless really, just picking numbers). You lose your job, now you have a dad who needs help, a 1st mortgage with the same payment as before you put the 50k down on it, a second mortgage or HELOC to pay on as well and your 50k cash is gone. Had you used the cash you'd only have a your 1st mortgage to pay and 20k in extra cash since you would have used 30k to help your dad.When the bank comes knocking for your house they wont care you made a 50k payment, they just care that you make your existing ones on time. Now if your efund is significant and you can't make more than 6% on some investment it might not matter.David
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