Sorry for the "give me finance advice for my very specific situation" post but I've read a lot of these threads and am still curious about some things.
My stats:
- My Mortgage is $2650/mo
- I have a roommate who pays $1250/mo in rent
- My income is about $120k this year (I'm freelance so it fluctuates a lot)
- My house is my only debt @ interest rate of 4.125%
- I owe $410,000 on the house
- Looking to take at least a couple months off of work to collect myself / re-align.
- Already have a maxed out Roth IRA
- I have a $40k emergency fund + $40k in a money market
The good news is I'm still receiving about $200k from back pay and miscellaneous things. So I'm trying to figure out what to do with that while giving myself enough breathing room to take a much needed break from work.
My idea was to recast my mortgage, I think my lender told me if I recast for $200k my mortgage drops about $1000/mo, so basically my monthly bill for housing would reduce to $400/mo.
Is this the right way to go, though? Should I be investing some of this new money? I'm very risk adverse. And while taking time off work it seems very appealing to only have to pay $400/mo for housing.
Thoughts?
Thanks!
Submitted June 08, 2019 at 10:39PM by hugevag http://bit.ly/2wIwghV
