re: Pay off house or invest Pt. 2

First, sorry for your loss.

I’m not a financial advisor, but a few things to consider. Depending on how long ago your wife passed, you are probably grieving her loss. It sounds like you have a pretty good grasp on things and aren’t going to be making emotional decisions.

To your question; I would refi the current primary mortgage to a better rate and pay nothing extra on it. 4% isn’t terrible but you can get below 3%, for now, which would free up a little cash flow each month. Second, get the rental property rentable and rented OR sell it. Third, max out kids 529/college fund. Seek a tax expert to explain the best course for this. There are limits but a professional can give you all the information you need.

Lastly, I don’t know what you job entails but one thing to consider is having a solid nest egg in a index fund that easily accessible. As your child gets older, you may or may not be able to have the same amount of earnings because of your responsibilities as a single dad.

Once again, this just my opinion and a financial planner can give you more detailed numbers.