I know, I know, lots of threads on this subject. But I think my situation is a little different then the others I've seen addressed.
The facts:
A. Currently have a mortgage on my house at 6% for $49k. (Realize that is high, when we looked at refinancing we were told it really wasn't worth it by the time we figured in fees because the mortgage was so small)
B. Have enough savings to pay it off, and still have a nest egg in the lower to mid six figures. My wife and I are in the 35-40 age range, FWIW.
C. This is where I see my situation as slightly different then others I've read. Due to recent health issues I've had to cut back at work to half-time, while my wife continues to work full-time. This makes cash flow tight. We are getting by, but not able to save a lot each month. Getting rid of the mortgage would allow us to save some in our IRA's, etc each month.
What are the groups thoughts? Pay off the house, thus locking in that $49k to save the 6% on the loan (Then using the former monthly payment to invest in the market again)? Or continue to let the $49k follow the market, while cutting our already very tight budget to save what we can each month?
The facts:
A. Currently have a mortgage on my house at 6% for $49k. (Realize that is high, when we looked at refinancing we were told it really wasn't worth it by the time we figured in fees because the mortgage was so small)
B. Have enough savings to pay it off, and still have a nest egg in the lower to mid six figures. My wife and I are in the 35-40 age range, FWIW.
C. This is where I see my situation as slightly different then others I've read. Due to recent health issues I've had to cut back at work to half-time, while my wife continues to work full-time. This makes cash flow tight. We are getting by, but not able to save a lot each month. Getting rid of the mortgage would allow us to save some in our IRA's, etc each month.
What are the groups thoughts? Pay off the house, thus locking in that $49k to save the 6% on the loan (Then using the former monthly payment to invest in the market again)? Or continue to let the $49k follow the market, while cutting our already very tight budget to save what we can each month?