[flash]

Fern, it sounds like you are right on track.

Even if you don't vest to receive the company contribution, the money you invest in 401K is pre tax, and if you have choices in how you manage it, you can make a good return. It's also a safety net.

Paying off the mortgage is not a bad thing. The tax benefit from interest payments is higher in the early years of the loan, when most of your payment goes towards the interest. The advantages of having more equity, less debt, and more freedom, as well as psychological, are also important to consider. Also PMI...

We put down 20%, made the monthly payments plus a bit extra for 6 years, then paid it off. Hubby got his tax credits, I got peace of mind that I wasn't going to be paying off a debt while I was retired/limited income.