Hi all,
Forgive another mortgage payoff question, but I would be happy to take any advice offered.
I have 11 years left on my 15-year, 2.375% mortgage, original balance of $275K. I can pay off the balance for $204K and save $29K in interest.
I am interested to retire at end-of-year, at age 65.5, but not take SS until 70. I will draw from my 401K and after-tax investments to "bridge over" to SS income, but it would be nice to reduce monthly expenses in order to reduce as well the necessaray draw-down from these investments. Paying off the mortgage would eliminate the monthtly P&I payments of $1,800. To pay off the mortgage, I will need to sell securities (likely from my after-tax portfolio) and incur some LT capital gains. The market has done so well, I have "raised" the necessary funds just over the past several months. Time to take some money off the table?
I'm not sure what's best ... sell securities now and pay it off, or sell securities continuously over time to make the remaining P&I payments? But there's the psychological benefit of having it paid off.
Thanks for any thoughts.
Forgive another mortgage payoff question, but I would be happy to take any advice offered.
I have 11 years left on my 15-year, 2.375% mortgage, original balance of $275K. I can pay off the balance for $204K and save $29K in interest.
I am interested to retire at end-of-year, at age 65.5, but not take SS until 70. I will draw from my 401K and after-tax investments to "bridge over" to SS income, but it would be nice to reduce monthly expenses in order to reduce as well the necessaray draw-down from these investments. Paying off the mortgage would eliminate the monthtly P&I payments of $1,800. To pay off the mortgage, I will need to sell securities (likely from my after-tax portfolio) and incur some LT capital gains. The market has done so well, I have "raised" the necessary funds just over the past several months. Time to take some money off the table?
I'm not sure what's best ... sell securities now and pay it off, or sell securities continuously over time to make the remaining P&I payments? But there's the psychological benefit of having it paid off.
Thanks for any thoughts.
Statistics: Posted by gregger — Tue Jan 30, 2024 5:15 pm — Replies 9 — Views 526