Tuesday, April 29, 2008

Paying off Home Mortgage

One of my goals is paying down my mortgage within the next 3-4 years..

I have a 7 year ARM @ 5% and the ARM will adjust in the next 3 years and even though I have a cap at +2%( the highest rate that my ARM can re-adjusted to is 7%), I still feel paying down my mortgage debt is prudent considering the economic situation we are in now.

Yep. I have thought about the arbitrage opportunities(invest in stock market, other high yield funds/bonds) but the possibility of higher taxes in future alone will prevent most people(including me) from saving any of their income..

Am counting on the following to accelerate the principal payments!
  • Savings from my paycheck...
  • Any year-end bonuses...
  • Any federal tax refunds...
  • Substantial stock options appreciation...

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