Thanks in advance for any help - my husband and I are in that financial position where we make good money but really can't do anything with it.
So here's our picture: we currently own and live in a condo in an iffy area (that I have a feeling will go totally downhill in the next 5 years). The mortgage is only in my name, and the current payoff is $89,345.20 at 4.125%.
I currently earn $41,000, and my husband is a contract employee earning $31/hour until the end of the year (I don't state an annual salary for him because there isn't one, he started in June and only has a guaranteed job until the end of December, doesn't get paid holidays, etc.).
We currently have $60k in savings, and I have a retirement account through work that I put in the max match on with my employer.
We are planning on fully funding our Roths by the end of the year, so that's $11k right there gone out of savings, leaving us with around $58k if we keep our current savings trend up. I want an emergency fund of at least $20k, so that's $38k remaining at the end of the year. My husband wants to take around $25-$28k of that and pay down our mortgage and I am not in agreement with him right now. I feel like his employment situation and our housing situation is too unsure. That would leave us next to nothing for a downpayment if we needed to move. So, I'm looking for advice on what you guys would do with the other "chunk" of savings that we have once we get the Roths out of the way. Is he right in that we need to pay down the mortgage to help with the interest? The only other debt we have is a car loan (about a year old) that will be down to $6,600 or so owed (at 0.9% interest) by the time we need to make this decision. We got it solely to build my husband's credit because he's an immigrant and we've had a nightmare of a time building it - so I guess we could pay that off too.
As a side note, and feel free to skip this if you just want to answer the mortgage question - my husband is hellbent on us renting our condo out to either a stranger (I'm against) or my brother (I'm meh on). If it's my brother, we basically wouldn't be making a profit as he's in a bad financial situation and we'd be "helping him out" - I feel like this puts us in a very precarious situation if we're not making anything off of the condo - what happens when something breaks and we're trying to manage another house? I also doubt we could get approved for anything substantially better than what we've got while I'm floating the other mortgage "alone" on my lower salary.
Any advice is appreciated!
Submitted September 25, 2017 at 11:12AM by galaxystarsmoon http://ift.tt/2yo817B
