Pay down mortgage or save for kids' college?



Those who are looking for an answer to the question «Pay down mortgage or save for kids' college?» often ask the following questions:

🎓 How save money for kids college?

Open a 529 account for each of their children. What is a 529 plan? A 529 is a tax-advantaged savings plan established by individual states to help families save for higher education expenses. Each...

🎓 How to save for kids college?

8 Ways to Save for Your Child's College Education

  1. Open a 529 plan.
  2. Put money into eligible savings bonds.
  3. Try a Coverdell Education Savings Account.
  4. Start a Roth IRA.
  5. Put money into a custodial account.
  6. Invest in mutual funds.
  7. Take out a permanent life insurance policy.
  8. Take out a home equity loan.

Question from categories: college savings college fund baby college fund

🎓 How much to save for kids college?

How Much Should You Save for Your Kids' College? While current college costs can give you sticker shock, many families often pay far less than published prices for both... It's still important to save early and consistently, and a 529 plan can be a smart and effective way to do it. Set some ...

10 other answers

Our only debt is our home mortgage. We have 19 years left if we continue making payments as scheduled. I'm anxious to pay it off sooner, but also need to save for our kids' college (4 year old & 2 ...

When debating paying down a mortgage or saving for college, keep in mind that you are proposing paying into an illiquid asset (your home) vs. paying into a liquid needed investment (college...

Rachel is considering two options: Burn the family's mortgage by 2013, a year before Laura, 14, graduates from high school, or invest $1,000 a month in college-savings accounts for all three...

If you have young children and a house, you may have faced the dilemma of whether to pay off more money on your mortgage or start putting money towards a college tuition fund for your children. So, what’s the right answer? Well, every answer is different given someone’s situation. Here are some things to consider:

If you have at least 20% equity in your home, it might make sense to refinance your mortgage for a lower interest rate and save for college in a 529 plan. You will have to pay closing costs when you refinance, which are typically around 2% to 5% of your home’s purchase price.

Paying off your mortgage before your child starts college frees up cash you can use for tuition bills, says Kyle Moore, a Minnesota-based certified financial planner and founder of Quarry Hill...

College and mortgage. If you’re investing 15% of your income, you can still put money toward Baby Step 5 (saving for your kids’ college) and Baby Step 6 (paying off your home early). Yes, you could invest a lot more than 15%—and you will later—but until you get Baby Steps 5 and 6 out of the way, just stick to the 15%.

The way I see it, if you pay off the mortgage and save $3k/month for 96 months (8 years), you'd have $288k in just principal deposits. That's more then enough for 2 children to go to college on. Plus, if you ever decided to buy another house and your mortgage is paid off, you could buy an entire house with cash.

It’s never too late to start saving for your kids’ college fees, but it’s only sensible to take care of your own financial security first. I recently saw on the news that around 40% of parents contribute to their children’s education funds and I think the figure is pretty low. If parents play a bigger role in their children’s financial lives, the amount of student debt circulating in the economy would definitely decline, and that makes it a lot easier for graduates to start their ...

The answer usually depends on how much you expect to earn investing the money. But for one class of investor, the mortgage pay-down is a clear winner. That would be someone with a child likely to...

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How much should you save for your kids' college?

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Is it better to save for college or pay off mortgage?

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Should i pay off my mortgage early or save for college?

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How should i handle my finances to save money for kids' college?

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Is a bank a good place to save for my kids' college?

It really depends how long you have to save and how much you plan on saving. If you need to save money and in lower amounts in a short period of time it's safest to just put it in a high interest savings account with the bank. If you have a longer period of time I would go with a financial adviser and invest it.

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How to save gpa college?

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