<prompt> Human: My wife and I just had this conversation. We just had our second kid and saving up this much money again is going to take longer even if we pay off the loan and have an extra 300 a month. We have a small house and are trying to figure out the best ways to use this money so were not all living on top of each other.  <response>: Pay off the loan. The loan isnt bankrupt-able, and will follow you forever. You dont mention it, but if this 20K would help you avoid PMI that may change things. You definitely dont want to pay PMI if you can help it. 