While I'm usually not a proponent of prepaying one's mortgage, prepaying a HEL or HELOC is often a better idea because of the higher interest rate. That's the situation I find myself in. We're meeting all of our savings goals and have additional money available for something. Our Roths are fully funded for 2007 so I'm sending extra principal payments to the HEL. So far, I've been able to send in $1,015 this month. The balance started at $17,300, so this will bring in to about $16,300.
If I can keep paying $1,000/month through the end of the year, that would take it down to about $11,000.
I'll stop extra payments in January because I'll have to start Roth contributions again, which increase to $5,000 next year. Hopefully, by July, those will be done and I'll start chipping away at the HEL again. I'd love to have it paid off by end of 2008 or early 2009.
Paying down my home equity loan
July 24th, 2007 at 03:17 pm
July 24th, 2007 at 03:26 pm 1185290802
July 24th, 2007 at 05:30 pm 1185298219
July 24th, 2007 at 10:32 pm 1185316372