So I have been following MMM for a little while now and have made great strides towards a better financial future. Dh and I have been rapidly picking off debt, and are down to our last credit card, my student loans (which are only at a 3% interest rate, so not planning on killing myself to pay off... would rather invest that $), a mortgage, which we have an awesome interest rate on (2%... the result of a financial melt-down due to layoffs and a scary ride that thankfully led to an interest rate reduction), and finally a HELOC. The HELOC allowed us to get the home without a down payment. In hindsight, I would not have done things this way, but neither dh nor I have parents who were able to give advice on this topic, so we unfortunately learned the hard way :( I can only work with what we have, and trying to move forward with this now that things seem to be flowing in the right direction.
So here's my question.
Credit card: I know I have to pay it off asap. 10k on it. Plan to have it gone by Christmas.
Student loan & mortgage: Due to better interest rates (3% and 2%), I plan to just keep these going while I build our investments
Car: paid off
HELOC: Dh and I are planning aggressive financial changes. I can't decide if we should be holding onto this house for dear life due to it's insanely low interest rate, or trying to sell it when the market recovers to get rid of that HELOC. It's rate is 3.5% now, but I know it's a matter of time before it goes up.
Mortgage: 215,000 at 2% interest. 30 year fixed (9 years in)
HELOC: 60,000 at variable interest
I would love to pay the HELOC off, but that's a whole lotta money to come up with... money that if I were killing myself to get ahold of, I would so much rather be putting into investments! Once the card is gone, we will accelerate principle payments... but if we sold the house (in a few years) for a profit, the HELOC would be gone all at once and we could get into another house (in my mind, preferably something with rental income potential) with a down payment. But then the interest rate would, no doubt, not be as good! arrgh! I start going in circles when I think about it and i need someone with better financial chops than I to advise :)
If you were planning out the next 5 years or so, what would you do in my situation?