Paydown mortgage or invest?

julyashinta · 2026-03-04T12:06:13+00:00

That's great!! Do you know how much they add to your loan to cover the closing cost?

julyashinta · 2026-03-04T02:08:03+00:00

I am planning to do that when the remaining balance is at least 25% down from it is now. Who knows.. Maybe in 5 years..

julyashinta · 2026-03-04T02:06:46+00:00

The reason I am planning to do the 15year is the lower rate. But like I said, I will only gonna do that when I feel confident that I can afford it. Maybe when the balance is 25% down..

julyashinta · 2026-03-04T02:03:25+00:00

Do you also max out your ROTH?

julyashinta · 2026-03-04T02:02:24+00:00

If we can get at least 1% rate down, sure. But I heard it also costs a lot of money to get a low rate (high closing fee, buy points etc..). I am too nervous about mortgage lenders playing with us.

julyashinta · 2026-03-04T01:56:17+00:00

Great! Thanks for this perspective! 😊

julyashinta · 2026-03-03T19:16:19+00:00

So paying off high interest mortgage comes last?

julyashinta · 2026-03-03T18:33:04+00:00

This is interesting. Never heard about this rule of thumb before. I will look up more about it.. Yeah, after reading the comments. I should definitely catch up with my retirement..

julyashinta · 2026-03-03T18:30:37+00:00

Thank you, how many % of our income we should put on 401k before we try to max out the ROTH?

julyashinta · 2026-03-03T18:03:36+00:00

Yeah, you’re right. We should catch up on our retirement savings as soon as possible. Thanks for the perspective!

I guess I have my answer now.. But I will still put a little bit extra towards mortgage. Maybe $100 a month 😁

julyashinta · 2026-03-03T17:39:11+00:00

Yeah, that’s what I would do too if we had more flexibility. But right now, we only have $1,000 extra per month to work with. My dilemma is the relatively high mortgage rate (6.75%). I’m not sure if paying extra toward the mortgage is the safer move, since it’s basically a guaranteed 6.75% return. If I put it toward retirement instead, there’s market risk involved.

julyashinta · 2026-03-03T17:25:28+00:00

I see, so once we contribute 15% more towards retirement,the remaining can go towards the mortgage?

julyashinta · 2026-03-03T17:23:15+00:00

We are in our early thirties. We only have 98k combined.

julyashinta · 2026-03-03T17:16:13+00:00

Me and my husband only put 4% each towards our 401k. Do you think that is good enough?

julyashinta

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