YesLFKB,If my math is right and assuming $750k of your mortgage is tax deducible which it should be then the actual cost of your mortgage is about 5.7% including tax savings. $750k at 6.99% * (1 - 37% tax rate) and $730k at 7%.
I assume this is a 30 year based on the rate and I assume you're not very old. I would definitely expect the market to return over 5.7% over the next 20-30 years, so I wouldn't pay it off. You also may be able to refi at a lower rate in the coming years.
Most everyone else here will tell you to pay it off though.
Would you make the same recommendation if it turns out that
A) OP's current annual expense is 500K per year.
B) OP's portfolio is less than 500K in 100% stock and OP has only 1 month of emergency fund
C) And, the house is 2M
D) Based on the limited information provided, it looks like OP has a small portfolio in relation to the house, low saving rate, and high annual expense.
KlangFool
Statistics: Posted by LFKB — Thu Jan 23, 2025 4:21 pm