First time home buyers planning to close early next week. A little appalled by the lifetime cost of interest on the mortgage. We are sitting on some extra cash and I’m wondering if we should do anything with it to lower the cost of interest over the life of the loan. Open to different strategies (pay one lump sum toward principal up front?) or an argument on why we shouldn’t do this.
Details: $525k house, 10% down, prepaid PMI; financing $472.5k on 30 year fixed at 3%. Monthly payment is $2326. Have about $70k cash after close, $20k of which is emergency fund (about 4 months if we both lost employment, both in stable industries). We definitely have some “projects” but nothing immediate planned. If prepaying was an attractive approach, we could delay the projects and pay cash for the projects over time as we will have about $3k a month after expenses. We plan to stay in the house 5-7 years.
Submitted April 08, 2021 at 09:49PM by 11pr https://ift.tt/3rX5JHS
