We recently had a friend ask us why we are paying down our condos 2nd mortgage at an accelerated rate. I think it makes sense for a few good reasons:
1. It is our highest interest rate debt at 8.55%.
2. Once we pay it off we can:
a. Stay in our condo & have an additional $411.33/month to put towards saving for a house.
b. Buy a house and pretty much break even on renting out our condo.
c. Sell our condo, if necessary, and hopefully not be upside down.
3. We don’t have kids yet and can afford to pay extra to our mortgage.