We are actually refinancing to get rid of PMI. Borrowing the 115k on a 15yr would be very similar to what my current house payment + student loan payment is, except now more money would be going to mortgage principal, which would be nice. It just wouldn't allow us to save/invest nearly as much on a monthly basis. I personally feel as though the cash needs to be put to use in a Roth IRA for each of us followed by opening a Vanguard account...but I'm very new to this way of thinking and need some guidance! Always have been a saver, but as far as what to pay off first, how to invest and where, etc. has been challenging.