The headline says it all. 42 y/o male with $350K left on 6% 30 yr mortgage.
My plan is to use cash I have in a HYSA and a annuity that contract is done in June this year. I understand I will pay a 10% penalty on the annuity interest.
My goal is to save hundreds of thousands in interest owed to the lender, while having the pride of owning my home.
I have plenty in my TSP and Roth IRA and will retire from military service in 3 years with a pension and possible VA claim. This is an opportunity to also free myself from the poor choice of an annuity I took out in my 20's.
Am I crazy for doing this? Any perspective is appreciated.
Opportunity to be mortgage free
byu/ryswogg17 inMilitaryFinance
Posted by ryswogg17
2 Comments
Paying a 10% penalty is insane, don’t do that. Not a good plan.
Run an amortization calculator and see what different options of paying extra vs lump sum vs both will save you. I was going to be very aggressive on our mortgage, but realized past a certain number the savings would give me diminishing returns vs flexibility and other investment options.
Was surprised how for example paying 2k a month extra on it vs say 4k obviously paid off the loan quicker but total interest saved was way less significant than I’d imagine.
This one is awesome: https://www.calculator.net/amortization-calculator.html