Question on my 68K mortgage.

[dumpster56]

We moved, and the mortgage is 68 the value of the house is 345,000.

Brand new nice place outside of raleigh.

I am going to be working at my old job until Xmas then my early retirement kicks in jan1 07.

My payments of 398 a month for 30 years at 6.15%

I will have about 40K from sick days pay out when I leave and salary up thru the end of december.

Should I pay down principal?

Should I refi with a home equity, but rates are higher now.

Should I pay monthly ahead 4 years and take the tax break on the interest for 05 since my take home this year is near 100K?

Or just stick the cash in the bank CD at 4.5%

I wish I didn't listen to my wife . I was ready to buy a house that would have been motgage free BUT she saw this one and hey it really has all the things she ever wanted in a house and she has worked her little Arse off for 20 years so I went for the 340 house instead of the 270 house.

The things we do for our better halves.

 

[73ss454]

I would just pay it off and be done with it.

I've been following your escape out of NJ with envy. We have been trying to sell our house in NY and move down to Fla. We listed it in April with no luck since. Moved the price from 725K to 589K and still nothing. Yesterday we had an open house and got our first offer. We ended up at 570K. DW and I hope this goes smooth and we can make our escape and both retire.

We will pay everything off and have no debt for the first time in our lives.

 

[laurence]

quick calc says paying the 40k down on the principle will have the house paid off in 7 years or so.

But 398/month is not a very big payment, you have no better use for the 40k? If it's that or putting it into a CD, then I say pay it down.

 

[Brat]

I haven't pushed your numbers, this is a gut response.  I don't think the cost of a refi pencils out.

I would keep the mortgage.  $400/mo isn't much.  Take the other money and invest it, or as Laurence suggests put it against the principal and the home will be free and clear shortly.