I "think" I belong here. Historically as our income increased we refi'd from 30y @ 5%, to 15y @ 3.5%, and now 2 years in to a 10y @ 2.79 percent. I see the error of my ways especially considering market returns during that period.
I need some help with the thought process for the next move-most of which is hypothetical given uncertainty in interest rates, market returns, housing values,etc. So mainly a thinking exercise.
That said, we plan to relocate in a few years, and will walk away with ~$300k, and current prices for housing in new area location are $300-$350k. We'd plan to be there for quite some time (daughter will just be starting Pre-K, and close family there). My thought is 20% down, 30y fixed and invest the rest in VTSAX. I'd probably tweak my tax sheltered investments to maintain 80/20 rather than have the taxable account have its own allocation. I currently do not have a taxable account, but will start one as daycare costs lower. Maxing out Dependent Care FSA, HSA, 2x 401k, 2x Roth IRA's.
After the relocation, Plan is to work part time, so should be making enough to make the regular payments- but at some point, we'll want to pull the plug completely (5 years, 10 years?). Then what?
Do I pay off mortgage with hopefully a taxable account that doubled?
Do I change AA to something less aggressive and continue to make the payments out of the investment account?
Our goal would be to maximize ACA subsidies at that point (assuming still around), and maximize FAFSA benefits, but I think a large taxable account would affect the FAFSA.
Any advice is welcome and appreciated- nice to actually get these thoughts down!