I put all my saving into the house principle. Is it right?

Question

Besides buying 401k, (roth)IRA and Kids education fund, I put all the left over money into the house principle. Try to get rid of my only debt, mortgage asap. My rate is 5.125 for 15 years.

Wonder it is a smart way ?

Answer 1

I think you are making a good financial decision. Even though the housing market is tough right now, it won't always be.  You will have equity in your home and you will own your home outright and that will give you options down the road.  

Answer 2

That rate is so low, I don't know if you really want to pay off the loan quicker. Of course interest is deductable on your tax returns, which is a benefit. I saw online saving accounts today for 3.75% so if you don't have much readily available cash that may be an alternative. Right now the stock market is a great place for investing. I would play around with single stocks if you felt comfortable doing research on several companies. It helps to stick to something you know a lot about or buy a lot. If you buy it, chances are other people do, too!