Or - At my current payoff rate, if I keep the mortgage I can pay off at age 45 when my oldest goes to college but then that cash flow essentially will divert to college. For two kids. For a 7 year window.
In a "normal" month right now we typically have about $600-1200 on top that we toss into savings. So with $1450 increase in cash flow + normal overage, we'd have about $2-2.6K/mo of margin to play with.
So - do I take the large pot of cash ($115K) sitting there and put nearly all of it on the mortgage ($108K) and kill it? That would leave just $8K in savings but I could quickly build that back up to ~$20K in about 5 months for emergencies. Or hold tight to my pay-off-by-45 plan?
- Age: 39
Household income: $150K
Kids: two...one elementary, one middle school
Mortgage payment: $1100
Extra already putting towards mortgage: $375
Current mortgage: $107K
House value: around $275-295K
Liquid Assets: roughly $300-305K
- Savings (cash): $115K --- unusually high due to my decision paralysis and some bonuses
401K: $90K ----- now contributing max of $18K/year
Roth: $51K ----- contributing max of $5.5K/year
Spouse Roth: $6K -----just started in early 2016. now contributing max of $5.5K/year
Trad. IRA rollover: $12K ---- just sitting there
Past employment spouse acct: $13K ---- just sitting there
Child1 529: $9K ---- $1500/yr until house paid off
Child2 529: $6K ---- $1500/yr until house paid off