Pay down primary or save for first rental

[Andrew Thomas Vedder]

Q: Should I pay an extra $500 on my principal on my primary residence or save it towards a rental property? 

Overview: New homeowner, $120k income, ~7K monthly net income after deductions (Roth max, 401K, healthcare), 243K mortgage balance at 6.125% interest, monthly PITI on primary $1850.

If I add $500 to my monthly mortgage payment I can payoff my mortgage in 15 years. Currently have 22K in high yield savings account netting 4.85% interest. 

Thoughts on not paying down debt- inflation is here to stay. A dollar today will be worth 40 cents in 30 years. Save the $500 and put it towards a rental property to acquire cash flow rental that will appreciate over the years. 

Thoughts on paying down debt - An extra $500 a month will not break the bank and is arguably a safer play. Interest rates are not going to decline much (if at all) by the time I have a 25% down payment and enough of a safety net on a rental property. 

What would you do in my shoes bigger pockets members?