No. of Recommendations: 0
Here are a couple of additional ideas.

refinance into a HELOC or aggressive ARM such as a 1 yr arm or
a LIBOR 6/month arm to cut your interest rate in half. Since you have a bunch of
cash in the bank you don't need the protection of a fixed rate. If the rates go up
then you can use your cash to pay down the mortgage, assuming you are disciplined
enough to hold on to it. And in the mean time you get the benefit of a really low rate
(I think 3.0 is what I saw for the 1yr ARM mortgages) right away.

The HELOC should have small closing costs, and you can get a pretty attractive rate.
this will let you benefit some from any additional payments you make as when
the interest rates adjust, they reamortize the loan for the remainder of the time left.

Then you may feel that you can buy a ladder of long term CD's that get better interest
rates than your mortgage with some of the money. Or pay down some of the
principle, as you decide you want to, or invest in something more agressive.

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