Is my current approach efficient?
I would appreciate some input. My wife and I may have made some less-than-mustachian choices in the past, but we have never had credit card debt. We are currently paying down the mortgage to obtain 22% equity in order to eliminate the mortgage insurance. We plan to then use the extra funds to pay off the student loans, or at least the higher interest ones. Then we can invest the surplus cash in a rental house or stocks or whatever makes sense by that time. Here are the details:
We just refinanced to a $318,000 mortgage @ 3.25%, 30 yrs. Home value is $340,000 according to assessment when purchased. I have read that our streamline FHA refi means the home value is still valid as PMI assessment.
The student loans break down like this:
$4,000 @ 6.8%;
$14,000 @ 3.5%;
$350 @ 2.39%;
7,000 @ 1.62%.
If I left out some data needed, please ask. I am relatively new to loans, finance etc. If something doesn't make sense please let me know because I could use a sanity check here. Is (PMI -> student loans -> investments) the right order? Thanks in advance for any help or advice!