I think this is perhaps a combination of a Personal Finance and Investment scenario, hopefully I chose the appropriate forum here.
Currently, I have a jumbo mortgage at 5.5%. Rates are dropping, and I am also looking to diversify a portions of company stock (currently a significant portion of my portfolio). My thought was to use funds from liquidating some company stock (about 15% of holdings), to buy down the mortgage during a re-finance to bring it into a non-jumbo status. This could reduce monthly payment by 30%+ and provide a better interest rate.
I currently have about 30% equity in the property, but less than the capital gains exclusion (not by much). I do not currently plan to sell, and also live in a historically high appreciation zip code. The buy down would put the equity beyond the capital gains exclusion maximum, but I suspect I would be there regardless in a few years.
Is this a sound strategy or am I better off investing the diversified company stock elsewhere? I don’t have issues making the monthly payment, but also have to keep a fairly tight budget to ensure yearly savings goals remain on track. The additional cashflow would be useful from a lifestyle perspective.
Appreciate any thoughts from the community and thank you in advance. Any questions of course just let me know.
Currently, I have a jumbo mortgage at 5.5%. Rates are dropping, and I am also looking to diversify a portions of company stock (currently a significant portion of my portfolio). My thought was to use funds from liquidating some company stock (about 15% of holdings), to buy down the mortgage during a re-finance to bring it into a non-jumbo status. This could reduce monthly payment by 30%+ and provide a better interest rate.
I currently have about 30% equity in the property, but less than the capital gains exclusion (not by much). I do not currently plan to sell, and also live in a historically high appreciation zip code. The buy down would put the equity beyond the capital gains exclusion maximum, but I suspect I would be there regardless in a few years.
Is this a sound strategy or am I better off investing the diversified company stock elsewhere? I don’t have issues making the monthly payment, but also have to keep a fairly tight budget to ensure yearly savings goals remain on track. The additional cashflow would be useful from a lifestyle perspective.
Appreciate any thoughts from the community and thank you in advance. Any questions of course just let me know.
Statistics: Posted by Here2Grow — Tue Sep 17, 2024 4:36 pm — Replies 7 — Views 147