[USER]

Pretty generic question but wanting opinions because maybe I am missing something.

I purchased a house in Aug 2024. Interest & Principal is $2,950ish. With taxes and insurance it is ~$3,490.

I make bi-weekly payments of $2,000 so the additional ~$500ish is applied to principal on a monthly basis. Our interest rate is 6.65% and and over $2,400ish goes to interest strictly per month.

When rates drop I plan to refinance, but who knows when that will happen.

Would it be be best to stop putting the $500 towards the principal and invest that difference?

[Shawn]

For an HSA or a 401k match, 100% do that. I probably wouldn’t just for the sake of investing. Are you saving anything beyond this now?

I wouldn’t hold my breath until rates come down.

[Kimberly]

You are paying the most interest in the beginning of your loan. I would keep paying extra on the house because that is going to drastically lower your total interest paid overall.

[Grounded]

Looks like you need to decide if you think you will achieve a greater than 6.65% annual return investing.

The S&P 500 has averaged a return of around 10% per year, but that’s not guaranteed, and many forecasters are predicting lower than average returns over the next decade.

Nobody really knows what the markets will return in the future though, so you should make that determination yourself.

To sum up what I said, if you think you can get higher than a 6.65% return investing, then you should do that. Otherwise putting money into your mortgage is better.

[Author]

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