I would keep your cash on hand and do something else with it to return you more than 2.69% or 3.875%.
I take 1/2 of that money look into a very very stable stock that pays a decent dividend, and buy shares roughly over the next couple months, making sure that the shares purchased has the “reinvest dividend” selected. You can find some that are 5%+. I wouldn’t put everything in there. Maybe 1/2.
I wouln’t be in a hurry to pay off the mortgage at all. The rates are ridiculously cheap. In fact, I would consider refinance over and over again as rates drop .25% or more.
I would be doing everything I could to build up my cash position today, and trying to push out my fixed rate loan obligations as far out as I could….As such, I would think about paying off the car loan by cash-out refinancing $25k from my primary and pay of the car loan if that was an option…
My thought process is that the money I’m putting into a car right now that is mine, is considerably more expensive than money that belongs to the bank and will be returned over 30 years, as the dollar tanks… Not to mention that the extra $25k that I pull out of my primary mortgage, the interest I pay on it would be deductible on schedule A while the car loan is not. So I would run through the numbers to see if it would make sense to do that, using turbo tax and such.
But then again, I’m kinda stupid these days so I don’t know..
