Quote:
Originally Posted by MeInDenudinFL
It seems to me you don't have enough reserve to have a peace of mind. Think about this, why you want to hold the 30K until the end of the year AND then decide whether you want to pay it to the mortgage or not. That "or not" part is you are worried that something unexpected could come that may put you in tight spot. So, as you already planned to do, or it appears so, save that 30K for a year and keep that 30K as a reserve for mortgage pay off or some other emergency and then you decide what you want to do with the 2500 extra every month AFTER that. I still fail to see why you would want to accelerate a 3% mortgage though. But that is your decision and do what makes you comfortable.
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My reserve is in the 6 figures cash, however the main reason i would like to have additional cash and then at the end of the year 'decide' whether to apply to mortgage or not is that new opportunities come up all the time....from rental properties, to bigger than anticipated emergencies, etc.
having the cash provides even further security...... should something happen.
There's certainly a price that's paid at the end though...in the amount of the $600 i mentioned in wasted interest.