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Old 02-08-2013, 08:45 AM
 
9,981 posts, read 8,548,623 times
Reputation: 5664

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You need to think about how important having increased
equity in the home is to you. The more double payments you
make, the more equity you will have, which will increase your
ability to get another loan for investment property income, or to
finance a replacement primary residence.
So, the double payments do not adversely affect
your "bankroll" as long as you use the equity to your
advantage. If you have no intention of using the equity,
then yeah, cut down.

Last edited by Snowball7; 02-08-2013 at 08:57 AM..
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Old 02-08-2013, 08:47 AM
 
4,196 posts, read 6,275,356 times
Reputation: 2835
Quote:
Originally Posted by MeInDenudinFL View Post
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.
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.
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