Thanks for all the advice! This has actually made me realize that I should really do something about that 6.2% loan.
OK, story time! Last year, I found a ridiculous foreclosure deal ($35K for a property that needed almost no work and is worth at least $70K). I had been looking for houses for a few months and had been burned a few times by investors swooping in with cash offers on the most promising properties. But this was a Fannie Mae house, so as an owner-occupant, I had the advantage for once. Cue my parents, who toured the house with me and also thought it was a great deal, and who offered to move some money around so I could make a cash offer of my own.
Once I owned the house, I went shopping for a home equity loan to pay back my parents. None of the big banks would lend me the full $35K, because they said they had to consider the "value" of the property to be the purchase price, and they couldn't go higher than 80% of that. My little credit union was willing to use the auditor's assessed value, but they came with the high rate.
Now that I've owned the house for more than a year, I believe the big banks can use the assessed value of the house. Time to go shopping for a refi!
A few more details from questions upthread:
The raise is from $50,000 to $60,000. So I'll be upping my 401k contribution from $5K (10% of $50K) to $9K (15% of 60K), nowhere near the max.
No Roth, just the 401k (which is at $89,000 right now) and a few investment accounts totaling about $20K. About $3,000 in cash. I run all transactions I can through a rewards credit card but don't carry a balance. No debt except the house. My 2005 Hyundai is paid off and should last me at least a few more years. I live in Ohio, so cost of living is low.
I think for the new year I want to look more at my spending and give myself a few facepunches to bring up my savings rate, but for now, I'm looking for a place to divert this new money BEFORE it winds up in my checking account and I end up getting used to it. :)
And hybrid, you are right - I am 33. :)
Thanks again for all the advice! For those of you who recommend putting it all into the 401k, why do you feel that's better than an investment account? Is it better for tax reasons, or just because it forces you to keep the money invested long-term?