Hi! I’m 26 yrs old living in South East Texas. I make $53560/yr. I max out my Roth IRA and my job puts away for retirement, as well. I have a nest egg that is roughly 4 months of living expenses. I also have a brokerage account with around $7000 in it, this is invested in primarily the S&P500, AAPL, and a clean energy fund with smaller holdings in a sports gambling ETF and a space technology ETF
I currently own a home that I bought with a state grant. I used that grant to put down ~7% on a 200,000 home and have a 30 yr note with about a $1400 payment currently (that’s principal, interest, taxes, and insurance). My girlfriend of 6 yrs and I split this payment and all other expenses 50/50
My current goal is to get rid of my PMI. My current trajectory is no more PMI in May 2030. My PMI is $101 a month.
I have 3 things to consider to help me do that faster.
I am getting a 4% raise. I am considering taking that money (roughly $70/pay check or ~$2000/yr) and putting it towards the house. This would put me ahead by 24 months of payments. This would save me 2424 in the log run, not to mention the interest I’d save.
I have $7000 invested with no goal for it. I could pull that and put it towards the house. This would put me 22 months ahead of schedule, and I could invest the new money and rebuild just the same. Which would save me 2222 including the interest difference.
Finally, I could do both. Doing both would put me 40 months ahead of schedule. Which would save me 4,040, plus all the interest.
Is it worth doing this? Or should I just invest the $70/paycheck and let that continue to move?
Bonus question, what do you use your brokerage investments for? I’ve never really had a goal for mine and the last time I sold was to pay off my car in late 2020.
Thanks for the input!
Edit: home was bought in September 2021 at 4% interest
Submitted April 24, 2023 at 11:36PM by Oxigenate https://ift.tt/8MLD7SG
