I was going to Wells Fargo to make a large principal payment on our home mortgage when a nagging voice said I should wait. As a beginner Mushachian, I came home to check the blog and forum for any last minute advice on if this was the right call. I've now read with interest ( and some confusion), all the threads weighing pros and cons of investing the money vs. paying off mortgage. I'm now asking for some input as I really don't know which direction to take. Here's our picture:
- I'm 42 and wife is 39
- $70,000 cash in two standard savings accounts (I know, I know, it's why I'm asking for advice)
- 215k mortgage on residence at 3.25% 30/yr fixed (house appraised at 285k)
- 99k Adjustable rate on rental currently 3.75% about to adjust. Rents are $730 monthly (house appraised at 91k) horrible decision in the housing boom of 2005.
- As of this morning we have 485k in 401, Roth, Trad IRA. Wife maxes out 401k with match about $21,500 annually. We both max Roth and my traditional which is another $15,500 annually.
- Cars are paid for with no other debt.
- Combined gross income about 195k.
We are working on getting our living expenses to Mustachian levels. I realize that paying off the mortgage is an emotional issue but my wife is in a corporate high stress job and probably won't want to do it for ever although 160k out of our gross income is her salary. I'm a newbie Realtor with a few side businesses. Our initial philosophy was to pay off both mortgages in about 3-4 years which would loosen the belt and allow my wife to work part time at a less stressful job if she desired. We would then take all extra money and invest until reaching FI.
Any ideas or recommendations would be greatly appreciated. I'm a child in the world of finance, accounting, investing, etc, but am having a blast learning.