Author Topic: best brokerage account for mortgage?  (Read 398 times)

megan1104

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best brokerage account for mortgage?
« on: July 27, 2019, 09:00:52 AM »
I'm looking for some advice on the best brokerage account to stash money that is earmarked for our mortgage. Here's the background:

We have about $366k left on a 30-year mortgage that we took out about 4 years ago. (We live a high-cost city, Seattle, so this is actually a relatively low amount given the house's value). The PITI on this mortgage is $2,611 per month and we've been paying between $500 and $1000 per month additional to reduce the principal and shorten the mortgage's duration. We would like to start a separate account that is purely intended to grow and one day pay toward the mortgage. We would be willing to funnel half to all of this extra principal payments to this fund, knowing that the market can do better with this money than the 3.875% mortgage interest rate over the long term.

My questions are:

* What's the best, preferably, Vanguard brokerage account for this purpose? (My wife and I both already have Roths, max out employee investment options, have no other debt besides the mortgage, etc.)
* Is there an optimal interval to invest in such an account and then withdraw to make payments toward the mortgage: 5 years? 10 years? Never until we want to pay it in full?

More background: I am 45 years old, my wife is 42, and we have four kids (the oldest are twins in 7th grade and the youngest is about to enter kindergarten). I'd prefer not to have a mortgage when I'm in my 60s and our kids are in college or beyond.

As always, any thoughts or advice are greatly appreciated!

Best,
Megan