Here is my current situation:
28, 27 Married couple, no children. Combined monthly income: 7300 Combined Mortgage (1st and Heloc): 3000 Monthly bills: 1850-2100 (includes school load payment, utilities, food, property taxes) Car payment: 400 (two more years) Combined savings: 8000 Current Stock Holdings: 2000 (mostly Google) I am a computer programmer and my wife is a graphic artist/marketing coordinator.Within about two years we are planning on having children. With that my wife will be out of work for at least a few years but may continue to do some freelance design work from home. Until then I would like to give myself as much cushion as possible.
My current home loan allows for several payment options which include: Min Payment: 1300 Interest Only: 2600
30 year amortized: 2850 and 15 year amortizes: 3830What is my best option here? I have been making Interest only payments on this load since its inception in June 04. Am I better off letting my loan increase as I save and invest an additional 1300 a month? Would the question be whether I can invest that 1300 a month to get a better yield than the increase in principal to my loan when I only pay the minimum?
I could afford the 30 year amortized... an extra $250, but is that really a better solution?
I really appreciate any help you can offer.