[USER]

My husband and I are closing on a home This is our first home and even with a 800+ credit score, our interest rate is 6.625%.

I just looked at the amortization schedule and I want to throw up

It is literally disgusting to see how much is going towards interest….

We have an old car which we will need replacing and no children yet…

What and how do you budget for paying off your home?

My husband does not receive an employer match and I am self employed and max out my solo401k.

Would an additional $5k per month thrown at the principal make more sense than saving & leaving in a HYSA?

I am kind of all over the place with my thoughts but kind of just wondering, what is next after maxing out retirement accounts, having a hefty emergency fund…

Saving for future kiddos? Work towards paying off the house?

-Signed a 29 year old feeling emotional making such a large commitment aka buying her first home

[Adam]

Don’t worry about paying off your home early. Invest in the stock market instead and you’ll make more in the long run.

[David]

I would suggest you learn a bit about the time value of money. Essentially it’s just a matter of what you spend it on today is worth more now to you than what it could be in the future.

Let math do the emotional work for you.

If the rate of interest is higher than the rate of return from an investment, then you pay the debt down.

If the rate of return from an investment is higher than the interest rate, then you invest the money.

Regardless, investing the money and holding long term will almost always win out over paying down debt quicker.

These are your fortune earning years so don’t waste them by paying off debt that you are financially able to cover.

Wait several years and refinance when rates are hopefully lower.

[Author]

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