My husband and I just bought a house. We are having a tough time figuring out if we should pay extra on our mortgage or is we should just invest the money. Here are the details:
Triplex House Loan amount: $219,600 at 4.5%
Current rental income: $1800 per month
Rental income in December: $2100 per month (section 8 tenants leaving and renovations)
Payment: $1939 per month (including $65 PMI)
When we first started looking at houses, we agreed that we didn't want to pay more than $2000 a month with everything included. At that time, we were looking at single family homes. Soon we realized that there was no way that we could hope to buy a house in a decent area, (less than 15 miles from work), for that amount. We switched gears and bought a triplex.
At that point we said that we would use the rental income plus the $2000 we were planing to spend in order to pay the mortgage in approximately 10 years. This would make our monthly payment $3939. Now I am having doubts...
Should I add the extra amount to the mortgage or just invest in some index ETFs?