The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: chake on July 12, 2019, 09:55:11 AM
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I recently bought a home, and got a 30yr fixed rate mortgage on 290,000 at 4.5%.
Now, I'm receiving a bonus from work to the tune of $10,000.
I've got a small Vanguard investment account (~$25,000), pretty well balanced between total market index funds and bonds.
My question: is it smarter to throw that chunk of money at the mortgage now, since my payments are mostly interest? Or does it make more sense to invest that $10,000 because I'm likely to get better than 4.5% return in the long run?
Amortization calculations say that an extra 10,000 now would knock two years off the mortgage payments and about $17,000 off the total interest paid. Thoughts?
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I'll start making the popcorn.
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Do everyone a favor and read this entire thread:
https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/ (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/)
Delete your own thread and if you still have questions or concerns, ask them in the linked thread.
Trust me, this has been exhaustively covered there.
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I'll start making the popcorn.
I can never decide if I want to go with this:
(https://media.giphy.com/media/fGX80AAczeBEOOwEoK/giphy.gif)
Or this:
(https://media.giphy.com/media/pUeXcg80cO8I8/giphy.gif)