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Helen Said:

I have some money in the bank that I could use to payoff my mortgage, however I am not sure if that is good.?

We Answered:

Fully fund your retirement plans. You can still contribute to an IRA for 2007 right now, and also for 2008. If you've already filed your 2007 taxes, file an amendment. You can also contribute to ROTH IRAs.

You can make extra payments of principal, without paying off your loan in full, and that will reduce the amount of interest you pay over the life of the loan, as well as shortening the lifespan of loan. The longer you have held this mortgage, the less interest you are paying, with most of your payment going to principal. Why not make your regular loan payments now, plus an extra $100 principal payment every month?

If you look at the long-term, it's a good time to buy stocks because the market is low, and stock prices lower. But if you think short-term, no. Bonds are a steadier investment, but you should have both. And there are always CDs, treasuries, etc. Diversify, and don't put ALL your money into the house.

Sarah Said:

can mortgage co. force loan payoff with insurance damage proceeds even if contrary to mortgage contract clause

We Answered:

The loan company can't do anything that contradicts the contract. That's why there is a contract in the first place.

Mattie Said:

Can funds from a mortgage escrow account be used for purposes other than insurance and taxes?

We Answered:

I believe so. If you owe them the money, even if it was their mistake they reported to you incorrectly, I don't see why they cannot borrow from the escrow account to satisfy your other debts.