Hi everyone,
Long time reader of the forums and new member here.
Background:
15 year mortgage at 6.125%
Acquired mortgage August 2024
Balance is currently 190k
Monthly payment is $1650 PI. I pay taxes and insurance seperately
My Finances:
31 single
No debt other than mortgage
Annual income roughly $165k - $220k depending on overtime
Stable and secure employment
401k balance is 500k, contributing 20% pre-tax and receiving 8% company match
Roth IRA balance is 100k and maxxed every year
Taxable balance is 90k, currently contributing 1k per month for general savings
20k in HYSA for emergency fund
Here's where the question comes in....I got divorced last year, very amicably, and we recently sold our martial home and I walked away with 155k from our equity split in the home. I am not a big fan of debt, but I also don't mind holding a mortgage if investing will pay off in the long run. I have been considering using the 155k from the home sale plus some of my taxable funds to pay off my mortgage. It does scare me to tie up all of that liquid in my home, but I don't necessarily need the money for anything else. I would be left with about 55k in taxable if I used 35k of it plus the 155k to pay off the mortgage.
I admit, it would feel great to not have a mortgage payment at this age and would definitely invest the mortgage payment amount every month if I were to pay it off. I enjoy the comfort of having the liquid cash available, but at 6.125% would it make more sense to pay off the mortgage and get the guaranteed return vs holding the mortgage and investing the cash now.
Long time reader of the forums and new member here.
Background:
15 year mortgage at 6.125%
Acquired mortgage August 2024
Balance is currently 190k
Monthly payment is $1650 PI. I pay taxes and insurance seperately
My Finances:
31 single
No debt other than mortgage
Annual income roughly $165k - $220k depending on overtime
Stable and secure employment
401k balance is 500k, contributing 20% pre-tax and receiving 8% company match
Roth IRA balance is 100k and maxxed every year
Taxable balance is 90k, currently contributing 1k per month for general savings
20k in HYSA for emergency fund
Here's where the question comes in....I got divorced last year, very amicably, and we recently sold our martial home and I walked away with 155k from our equity split in the home. I am not a big fan of debt, but I also don't mind holding a mortgage if investing will pay off in the long run. I have been considering using the 155k from the home sale plus some of my taxable funds to pay off my mortgage. It does scare me to tie up all of that liquid in my home, but I don't necessarily need the money for anything else. I would be left with about 55k in taxable if I used 35k of it plus the 155k to pay off the mortgage.
I admit, it would feel great to not have a mortgage payment at this age and would definitely invest the mortgage payment amount every month if I were to pay it off. I enjoy the comfort of having the liquid cash available, but at 6.125% would it make more sense to pay off the mortgage and get the guaranteed return vs holding the mortgage and investing the cash now.
Statistics: Posted by SoTXNuke — Wed Dec 25, 2024 7:32 am — Replies 8 — Views 519