Keep emergency fund or pay off mortgage?

[George Batton]

Hi all. I'm 26 years old and just bought a foreclosure home for $86k. Fixed up, it's easily worth $120k. I put a down payment in of 40k and owe 46k on it now. My monthly payments are roughly $527 a month. I make somewhere over $2000 a month from my job, and have 31000 sitting in a money market account at 5% that didn't go towards the down payment. I get $683 a month from a trust fund set up by my grandparents. Should I just take that 31000 and put it towards my principle so that I only have to pay the bank back $15000, and eventually be debt free so I can take the money I pay on mortgage every month and invest it?