Hey everyone, I’m in a bit of a pickle and could use some advice. I’ve got about $220k in savings and I’m wondering if I should use it to pay off my mortgage. Here’s the deal:
- Mortgage balance: $149k
- Interest rate: 3.25%
- 15 years left
- This is our forever home
- My income: $120k/year
- 401k balance: $280k (I’m 37)
- I also get a pension
- Wife stays home with our 3 kids
Paying off the mortgage would free up $1200 a month. I know investing might give better returns, but I’m really tempted to get rid of the debt. Am I crazy for considering this? What would you do in my shoes? Any other ideas I should think about?
I’m torn between financial logic and the peace of mind of being debt-free. Help me out, folks!