Pay down mortgage or pay off student loans--?
DH and I planned to use the proceeds from the sale of our old house to get to 20% equity on our new house. Alas, things did not go as smoothly as hoped and if we used all the proceeds we'd only have about 15% equity (drat!) We could get a home equity second, but that doesn't seem to save any money (unless I'm figuring it wrong). If we put the ten percent we have down we will save about $300/month on the mortgage vs $550 a month if we pay off two student loans. This will leave us with about $1500/$2K a month after necessities are paid for other goals. We are hovering around the phase outs so we don't get any significant tax advantages with the student loans. They are also at a higher rate than the mortgage, although they are insured against death/disability. My questions are:
1. Is disability insurance for mortgages available? Is it very expensive?
2. Is there something I'm missing?
Appreciate the help! Thanks!