The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: freshsamanthaaa on December 17, 2012, 06:22:06 PM
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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!
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Are you paying PMI/mortgage insurance?
What's the interest rate on the mortgage?
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my PMI is $32/month, principal $500, interest $337
my interest rate is 3.5%
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You should be able to refi under 3 percent for 15 years. You might have to pay the principal down a little, but if you can hit 2.75 with no PMI, that would be worth doing. You can keep most of your liquid savings or start to invest the amount over your comfortable e-fund.
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This.