I have 137k in ARM mortgage which is presently at 4.375% will go up in August 2008. Presently I have $105 k in Vanguard Prime MM AC earning 5.14%. Also approximately $250 k in other stock funds. and 15 k in bank checking.
I am 40 years old, two small kids (6 & 8), 8 year old is autistic. both wife and I work in mid-range jobs and bring about 240k a year together. Don't have expensive hobbies, however do take vacations once a year and live under our means. Combined retirement accounts are over $600k. The assets listed above are non retirements accounts. Kids education accounts & special needs trust have over 50k.
2007-06-25 03:33:52 · 3 answers · asked by apm2006 3 in Business & Finance ➔ Other - Business & Finance
Keep the mortgage outstanding. It's a tax shield and there are not many available, so your effective rate is much less than the what the sticker says. As for the ARM rate, refinance it to a fixed or hybrid arm so that you don't get any sticker shock from rising rates, which may be on an upward trend for the near future. The only problem is that your mortgage is so low (not really a problem for you I guess), that you may not get people interested in re-financing it without points and such. Try and find a good product, maybe a 15-year fixed. I would think mortgage brokers are hungry for deal these days. As for your investments, it does not sound like you need the money, so consider getting a little more aggressive with it. Maybe not right now, but having some equity exposure will improve your returns over the long term, and help expand the fund for you and the kids.
2007-06-25 03:41:35 · answer #1 · answered by redwine 6 · 0⤊ 0⤋
As long as the stocks are making more money than you are paying in interest keep them.
2007-06-25 03:38:25 · answer #2 · answered by Beau R 7 · 0⤊ 1⤋
keep and refi for less or stay .stay may be a better credit option.not sure.
2007-06-25 03:43:13 · answer #3 · answered by martinmm 7 · 0⤊ 0⤋