OlderHPFan

I know there was another thread similar to this but it was from 2006 and I wanted to use my info.

I purchased a house when I was 21, for $116,000 and put down $20,000.

The original loan was fro 7.75% (which was good in 2000) for 15 years. I never refinanced, I was going through a divorce at the time, which prevented me from getting a much lower rate.

I now only owe $48,000 on the loan, due to additional payments over the past 9 years, the loan, with no additional payments is paid off, 02/2014, a year early.

I would like to pay it sooner though. I currently make $63k and have been contributing to a 401k since I was 25. I have 38k in my old company 401k and 20k in my new 401k. I have been contributing 19% of my pay to my traditional 401k, which is about $800 a month.

I am recieving $18,000 in January and also have $10,000 in low interest savings (3.5% (which really isn't that low right now).

I know from doing the math:

7.75% interest rate
25% tax
5.81250% actual cost of loan

But with stocks and things of that nature, I know most are curretly yeilding less than that.

I am thinking about stopping the 19% 401k (traditional) contribution and switching to a just the company match max, and using that extra money to pay off the house, which I could do, in about a year.

I like my house and have no intentions of selling or moving in the next 5 years. My house payment is 890 (P&I) or 1134, with insurance and taxes.

Once the house is paid off, I would go back to the 401k and then use the extra money to invest in other ways.

Is this a smart move? I would love to be 31 or 32 and have my home paid off.