Hello all, this is my first post, and I am curious to get your feedback. We are still trying to pay down our student loans (all federal) and have about $25K to go. They are all on the income-based repayment plan (REPAYE) which makes the effective rate for us around 4%.
We also have an ARM which will end its initial term in November of 2021. It has a rate of 3.375%. Our current balance is about $80K and roughly $180 every month of our payment goes to principal.
My strategy has just been to pay off our student loans first, and then maybe tackle the mortgage, but with the refinance rates getting so low now I don't know if that is the best idea. Maybe I should refinance now? We were thinking we would take a little breather after paying off our student loans because we have been living ultra-frugally since our marriage 13 years ago, and then start to slowly add extra to our mortgage payments to maybe pay it off in 5 years or so. But we also have 4 kids who will be in their teen years, and we haven't really saved for college, and then there are things like braces among other things that could come up with home repairs.
What would you do in our situation? I appreciate any insight you might have. Thanks!
