I have a small 401k at about 20k and only contribute about 5 percent.
I make about 80k and mortgage is about 200k.
I really want to pay off my house, but i know i would be missing out, on compound interest from my 401k...
What would you do?
you should MAX out yoru 401K contributions, make a bigger emergency fund (at least 9 months of expenses) . Paying down a mortgage is the last thing you want to do
the way things are set up that you get money back on your taxes well you would not want to pay off your house. If you have extra money you could invest it like in property but anything you do would require more than you think. No matter what job you're in you must continually update yourself and get education, sometimes to keep a license, so a course would take your mind off what you'd like to spend on. And there are always unexpected expenses so hold some back for your car. People don't generally pay off their home and there's no need to really. I'd say invest in gold and hold tight. When the dollar goes down gold will be too high to buy. We're still not out of a poor economy so you might want to stock up on canned food and rice and beans, and invest in some emergency needs. And earn even more.
I would stop paying my mortgage, then send them a Debt Validation Letter. Then when they send it back and cant provide the proof of the wet ink note that i signed(required by law) at the closing because they securitized after i bought it and got paid in full by stock brokers. I would sue them for fraud and no proof of note. By the way, this happens to almost every house, the bank you are paying does not own your house, look into it and track down what theyve done with your loan, note and deed of trust. If they cant provide one of those, loan and debt go in void. Bye bye
I would not sacrifice all your emergency funds paying down a low interest mortgage, maybe you van be a bit more aggressive making occasional double "principle only" payments to pay it down years sooner. You may need to have some sort of monthly credit payments to keep your credit rating up.
whatever you were paying towards debt, you can now increase your 401k contributions and/or pay a little extra towards Mtg principle each month
Increase your retirement savings.
