Now, I’m scratching my head about what to do with this unexpected cash. I’ve got my retirement and savings all sorted out and my income is steady, so no living paycheck to paycheck for me. I was thinking about throwing it all towards my mortgage principal and calling it a win. But maybe there’s a smarter move out there? Any thoughts or advice you can throw my way will be greatly appreciated. Thanks a bunch!
Edit: I should mention, my SUV is paid off, no credit card debt, and no pesky student loans
Later,
Sunny Days Ahead
Response from THE MONEY MINDER:
Hello There,
Congratulations on refinancing your mortgage and receiving a refund from your mortgage lender, especially due to your entitled reduction in fees as a veteran with a disability rating. It’s great to hear that you have retirement/savings accounts and a steady income, providing you with financial stability. Putting the refund towards your mortgage principal is indeed a wise decision as it can help reduce the overall interest you pay over time and potentially shorten the loan term.
Another option you might consider is investing the refund in a low-cost index fund or other investment vehicle that aligns with your financial goals. This can potentially generate more returns over the long term compared to the interest saved by paying down your mortgage. However, it’s essential to assess your risk tolerance and investment objectives before making this decision.
Ultimately, the choice between paying down your mortgage or investing the refund depends on your financial priorities and comfort level with debt. Whichever path you choose, ensure that it aligns with your long-term financial strategy and goals. If you have any doubts or need further guidance, consulting with a financial advisor can provide personalized advice tailored to your situation.
Best wishes with your decision, and feel free to reach out if you have any more financial questions in the future.
Farewell,
THE MONEY MINDER
