A family in their early 40s carries a 2.75% mortgage with roughly $500,000 remaining and a $3,400 monthly payment on a home valued at about $850,000. The home was purchased seven years ago for $715,000, showing modest appreciation. The household has no other debt, approximately $1 million in retirement and non-retirement accounts, $100,000 in 529 accounts, and about $40,000 in cash. Annual household income is around $260,000 before taxes. Given the low mortgage rate and substantial invested assets, prioritizing higher-return investments over early mortgage repayment is generally more advantageous.
For this Redditor, they are looking at a scenario where they have a 2.75% mortgage with approximately $500,000 left on the balance. This is equivalent to a $3,400 monthly payment on a house that is currently worth around $850,000. Having bought the house seven years ago for $715,000, this isn't a ton of growth, given what other areas of the country have done. This fact aside, the family has no other debt and has around $1 million sitting in retirement and non-retirement accounts.
They also have $100,000 invested in 529 accounts, and around $40,000 in cash. With a household income of around $260,000 before taxes, the family doesn't appear to be in dire straits. This said, in their early 40s, it's not impossible to think that they might want to figure out how to reduce some of their expenses. As a result, they are seriously considering either paying
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