This summer I purchased a modest home close to work. I had intended on a larger down payment but ended up putting approximately 10% down. Half of my monthly income goes towards the mortgage payment of $1,084(15 year 3.5 fixed apr) . I have savings of +-$50,000, no debt/excellent credit, and have rental income of $450/month. I owe approximately $116,000 on a house that would easily appraise at 140,000. My question is should I put a large portion of my savings towards the mortgage and speed up the time frame on paying that off, or am I better off investing my savings? I would prefer to keep a fairly liquid cushion of $7-10,000 in case I needed to replace my '97 corolla or to supplement my income if I decide to go back to school and need to cut down on my hours at work.
Thanks Mustachians!