I HATE Debt, Need Advice to pay down Mortgage

[imacsal]

Hello,

I am looking for advice from a pro.

Our homes current value is $225k. We put up $75k of savings and got a 30 year mortgage for $155k at 6% almost 2 years ago.

We have $42k of savings currently making 1.5% interest.

Our cars are now paid off. I hate debt, it stresses me out.

We also have $35k in retirement accounts such as IRA and SEP that has decreased in value. A few years ago it was at about $50k. After the past 5 years, I really feel the stock market is for insiders.

After finding an online mortgage calculator and realizing the short and long term impact of paying a chunk of the principle of our home, I am thinking about pulling $30k from our savings and paying down principle of home. That would leave us with $12k of savings as a "cushion" for anything unexpected.

I was also thinking about pulling all the money out of the IRA and SEP accounts and paying down the principle further, after allowing for early withdrawal/taxes. I understand that I'd have to pay a 10%-20% penalty and taxes on that money.

Any advice would be appreciated.

Thanks
imacsal in Illinois