Author Topic: Investing VS mortgage  (Read 961 times)

jonoliver

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Investing VS mortgage
« on: December 19, 2016, 12:25:25 PM »
Hi all!

First time poster, long time reader.

I know this has probably been discussed at length in various ways, but i am curious if the current timing of the market adds any layers to the discussion.

My situation is that we put 5% down on our house and got a mortgage for the remaining 95%. Interest rate is 4%. With our current income we would be able to reach 20% (or 80% LTV, whatever) by summer of 2017. It seems like it would make sense to throw all extra money at the mortgage until 20% to eliminate PMI which is about $90/month.

The other side of the argument is that I still haven't begun investing aside from retirement accounts and want to take a few thousand and open up a vanguard account. I think that psychologically, it would be beneficial to have investments out there that i can always be contributing to as i am saving money through frugality. But on the other hand, according to P/E, it seems like the market is a little on the over valued side and maybe it could be worth it to wait until the summer to get into the market anyways.

Any thoughts are appreciated.

Thanks all

ender

  • Magnum Stache
  • ******
  • Posts: 4864
Re: Investing VS mortgage
« Reply #1 on: December 19, 2016, 12:57:06 PM »
Are you maxing out your retirement accounts? All of the space?

How does your mortgage recalculate PMI?

powersuitrecall

  • Pencil Stache
  • ****
  • Posts: 510
  • Location: Ontario, Canada
Re: Investing VS mortgage
« Reply #2 on: December 19, 2016, 01:36:50 PM »

jonoliver

  • 5 O'Clock Shadow
  • *
  • Posts: 6
Re: Investing VS mortgage
« Reply #3 on: December 19, 2016, 02:07:22 PM »
Are you maxing out your retirement accounts? All of the space?

How does your mortgage recalculate PMI?

Well, I'm putting in enough to get my employer match since its free money, but they don't match much nor do they have great options to invest in.

As far as recalculating, the agreement says once i believe i'm near 80% LTV i can request that it's removed. Is there anything further to this process i might be missing?


Also, thanks for the link in the other response!