From various sources we have recently come into about 14K of money. We already have an emergency fund and contribute to retirement. Our only debt is two different mortgages, the first is 15 years, 3% interest for a house we are renting out. The second is for a condo for 30 years at 5.5%, it is majorly underwater but because we are now living in it, we were able to get it refinanced for a lower interest rate and lower monthly payments. We are moving out of it this month however, because my DH just started a new job and now we need to move again.
When everything is rented out (3 units total) the two mortgages and the HOA dues are covered and about 100 dollars 'extra'. We are about to sign a one year lease on a house by where DH now works. Our current plan is to rent for a couple of years and then try to buy a house again if it seems like we will be staying in this area.
So we are not sure what to do with the money.We have a 100% track record of losing insane amounts of money at the stock market. We are seriously thinking about sending it all to the mortgage on the condo. The only thing that is stopping us is that there is no way we would be able to get that money back if for some reason we needed it (and yes we do have a fully funded emergency fund already that is above and beyond the money here). It we do a one time lump sum payment of 14000 we will save 42K in interest and shave off 9 years to the mortgage, which is wonderful. My only concern is, technically, it would still be underwater. And it is just annoying to me that we have sent 'so much' cash and yet still could not sell it if we needed to without bringing more cash to the table.
The other option is to hold onto it and we would probably put it into an account at 2.9% APR guaranteed. We would then plan on adding to it monthly until the time we were ready to buy a house again and use it as a down payment. We are concerned however that we might not qualify since we already have two mortgages . . . and one of them would most likely be upside down still.