Hello,
I am in the process of re financing my mortgage with a cash-out..the reason is that my home equity made 47% of my total net worth (168k equity and $187k invested in 100% stock, total U..S.market index funds)...and I wanted to have more invested in the market instead while mortgage rates are still low.
No intention to stay in the house and sell it after FI, in 6-10 years..
With the re finance, will have 84k available of which 18k thinking to set aside for EF..
The question is what to do with the rest 66k?
First wanted to invest it all in VTI, now having second thoughts (and am fearful) with the market reaching new " all time high" every day..
The alternative would be to front load contributions to 401(k) to max it to 55k.. I have been using Mega door Roth and was short about 10-12 k a year to max it..So that would mean spreading out that cash over next 6 years (keeping it in a 1.5% savings acct in meantime) and if there is a big market correction in meanwhile, invest whatever is left at once at that point of time?
Which makes more sense?
The new mortgage rate is 3.75%