Hello everyone,
This is my first post. My name is Chris and I am turning 27 in about a month. I'm married and coming up on my first anniversary. We bought a house two years ago and both work full time with no plans to have children. I'm definitely the financial partner between the two of us and I'm trying to set up the means for us to retire early and live a happy life that doesn't revolve around work.
I started 6 months ago. Since then I have done a combination of Dave Ramsay strategies and some new strategies on my own.
In the past six months, I have managed to pay off both of the household cars. I have paid off any and all debt we have with the exception of our mortgage. We are now in the process of saving up 6 months worth of expenses in an emergency fund. Beyond that though I'm a little stuck as to where I should go.
I've been having a money battle with myself regarding my next options. I view all debt as bad debt and this points me toward eliminating the mortgage despite it being a monumental task. On some days I think that's ridiculous and convince myself investing will provide much better results. And on other days I convince myself that I should pay down the mortgage to eliminate PMI and then just continue with the loan as usual.
Now the details:
Zillow lists my home's worth at $171,000. Our recent property value statement came in at the beginning of the year showing $161,000, however they don't come in the house and just look at it from the outside I'm guessing. The inside of my house is new and updated and all of the appliances including the HVAC are brand new.
We still owe $144,000. Our initial loan was for $151,900. I'll admit to myself I would've been better off saving for a longer period of time before buying. Our rate is 4.25%, but the PMI adds an additional 87.35 each month. My wife and I both put 15% in ROTH IRAs and she has a state retirement plan and I have a 403b plan at work and I invest enough to get the match. The thought of having no mortgage is alluring, but it would take a while.
What would you do if you were me?
Keep investing at my current rate and try and pay off the mortgage as fast as possible?
Pay down the mortgage to eliminate PMI and then invest as much as possible after that?
Don't bother with paying down the mortgage and just invest as much as I can?
Any other thoughts or suggestions?
My apologies if this is the wrong forum for this. I just wanted to introduce myself and share what I've experienced so far and I'd love some second opinions. Thank you!
This is my first post. My name is Chris and I am turning 27 in about a month. I'm married and coming up on my first anniversary. We bought a house two years ago and both work full time with no plans to have children. I'm definitely the financial partner between the two of us and I'm trying to set up the means for us to retire early and live a happy life that doesn't revolve around work.
I started 6 months ago. Since then I have done a combination of Dave Ramsay strategies and some new strategies on my own.
In the past six months, I have managed to pay off both of the household cars. I have paid off any and all debt we have with the exception of our mortgage. We are now in the process of saving up 6 months worth of expenses in an emergency fund. Beyond that though I'm a little stuck as to where I should go.
I've been having a money battle with myself regarding my next options. I view all debt as bad debt and this points me toward eliminating the mortgage despite it being a monumental task. On some days I think that's ridiculous and convince myself investing will provide much better results. And on other days I convince myself that I should pay down the mortgage to eliminate PMI and then just continue with the loan as usual.
Now the details:
Zillow lists my home's worth at $171,000. Our recent property value statement came in at the beginning of the year showing $161,000, however they don't come in the house and just look at it from the outside I'm guessing. The inside of my house is new and updated and all of the appliances including the HVAC are brand new.
We still owe $144,000. Our initial loan was for $151,900. I'll admit to myself I would've been better off saving for a longer period of time before buying. Our rate is 4.25%, but the PMI adds an additional 87.35 each month. My wife and I both put 15% in ROTH IRAs and she has a state retirement plan and I have a 403b plan at work and I invest enough to get the match. The thought of having no mortgage is alluring, but it would take a while.
What would you do if you were me?
Keep investing at my current rate and try and pay off the mortgage as fast as possible?
Pay down the mortgage to eliminate PMI and then invest as much as possible after that?
Don't bother with paying down the mortgage and just invest as much as I can?
Any other thoughts or suggestions?
My apologies if this is the wrong forum for this. I just wanted to introduce myself and share what I've experienced so far and I'd love some second opinions. Thank you!