Payoff House or Keep in the Market?
I owe about $90k on my mortgage and I was considering paying it off. Should I payoff the mortgage or let the money stay in the market. Taking this out of my portfolio would not significantly affect its market value.
Terry Says
Well, that’s tough advice to give without more information! First, what’s your mortgage rate? If you refinanced down to around 3% you might consider that a bargain as interest rates start to rise. Next, I have no idea how you are invested or how much money you would have left after paying off the mortgage. And is this after-tax money, where you would pay a lower capital gains tax if you sell at a profit? Or would this come from a retirement plan, where all withdrawals are taxed as ordinary income?
You might benefit from working with a FIDUCIARY Fee-only financial planner. Find one at www.Wealthramp.com.
And since you’re paying a set fee for planning advice, ask about things like your “estate plan” — a will or revocable living trust, and how your assets are titled in case of death,and a healthcare power of attorney, and a living will — and the possible need for long term care insurance. ALL of those topics could have a much more major impact on your future than this mortgage decision!
