Thanks, your explanation was excellent! I appreciate your time and input!It's simply the risk divided by the number of independent stocks as a ball park estimate.
Thanks David. This is actually going to be the first full year of this mortgage. Balance is currently around 330k, and I paid 37k in interest in 2024, so I will likely itemize this year. Initial loan at inception was ~500k, and I've been redirecting the monthly RSU vests directly towards principle payments, and will continue to do that until it's paid off entirely.If you have an 8% mortgage and are taking the standard deduction, the mortgage must be fairly small. A $300K mortgage would charge $24K in interest, and that plus SALT exceeds the standard deduction even if you have no other deductions such as charity.
This makes paying off the mortgage unusually attractive, as you can pay it off with a relatively small portion of your net worth (selling the stocks with the lowest capital gains if you sell some of the stock), and you will start getting the risk-free 8% back immediately by eliminating mortgage payments.
Thank you very much!
Statistics: Posted by takinthecake — Mon Dec 30, 2024 1:50 pm — Replies 11 — Views 948