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I think with your income, I'd continue to keep contributing to the retirement accounts, though I might be inclined to use additional cash flow to paydown the mortgage a little more aggressively. I think an extra $1000 a month could probably turn a 30-year mortgage into a 10-year mortgage or something like that. And in reality, I wouldn't rely on a HELOC for an emergency fund. Yes, to an extent it can be used for that, but you'd be taking on debt at a time when you could least likely afford it. Cash is king for an emergency fund. So I might be inclined to scale back the extra principal payment to get somewhere between $30-50K into the emergency fund. When that is funded, then I'd go back to the extra principal payments...maybe (see below).

Oh, and it's Dave Ramsey, not Tom, I believe you're referring to. And I know how much he hates debt, but I have a hard time advocating that someone push to pay off a 5% loan early. I'd rather plow that into tax-efficient taxable investments, I think, which could be used to pay down/off the mortgage in the future if need be.

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