<prompt> Human: I have around 40K saved and I have a mortgage of 109,000, 30 years at 8.13, I tried to refinance last year but I am under water, the value of my house now is 102K, so, should I do a lump sum of 30K to the principal, keep 10K as an emergency fund and then refinance?? this will bring my rate to a lower number, or should I invest those 30k??  <response>: No conceivable investment could possibly be anywhere near as good as paying down your mortgage since it is a risk free return of 8.13. Do whatever you can to pay down the mortgage and refinance at a lower rate, short of depleting your emergency fund. You should still have an emergency fund, but every other cent you can possibly spare must go to the mortgage until you can refinance and get a drastically lower rate. 