[GregWeld]

All "investments" and life style choices are individual - and there is no real right or wrong way. Better to say that there are MANY ways to do things and all can be right. Depends on the goals and where people are at in life etc.

At 25 - with a very low % mortgage.... I'd look at your house just like I'd look at any other investment..... in other words - don't put all your eggs in one basket. #1 - you have a short term mortgage. #2 - You're young. #3 - You have a great rate in a rising interest rate environment.

So - there are other considerations to be taken into account here. Your income tax rate. Your job stability. Your life situation stability.

Your mortgage interest is tax deductible --- therefore your real rate of interest is actually LESS than the face value.... because it's helping you avoid taxes. That's a good thing.

Your job stability at your age is a critical piece - because you don't want to end up with huge "equity" in your house - and be short of cash and investments should something change and you need to live for awhile without a steady income. So I would consider stashing some CASH savings first. Whatever that looks like for you. Maybe 6 or more MONTHS of living expenses, including our normal house payment and utility bills and that sort of thing. That way - come hell or high water - you'd have at least 6 months to find another job - or sell your home to relocate etc. I'd suggest that you're in a sweet spot right now - but 7 years from now - who knows what can change!


Once you have your emergency cash stash..... which gives you peace of mind and protects you from downside events out of your control.... THEN you should start to save for investments. Keep reading the thread so that you know what kind of investments you'd like to get into = how they work - and all the other things we write about here. Yes there's 500 pages --- keep plugging away at them while you're saving your emergency fund. I know that at 25 there is nothing "emergency" in your life.... but trust me -- just do it. You'll see why in a minute.

Let's say it takes you a little over a year to get the emergency cash built up to where you're happy with it. Now you start working on saving another 5 grand to buy some investments.... in the meantime you're now another 2 years into your 15 year mortgage.... You begin to buy in to some investments - and when you have 10 grand into your investments --- NOW you can invest your emergency funds -- because you'll no longer need them. You'd have plenty of reserves for an emergency... and you'll have fewer years left on your mortgage. Now you're earning dividends on your investments and you're still getting your tax deduction. All is good. Keep it up. You'll be retired early and loving life.