My wife and I were able to put a very large down payment on our house. We have 370,000 left on the mortgage, house worth just about 1 million with an interest rate of 2.5% on the loan with 26 years left. 1.5 million in investment accounts. $150,000 in cash earnings 5% in a HYSA. Is there any benefit or point to paying off the house at this time? With cash earning minimum 5% wouldn’t make sense to continue to pay the minimum mortgage and any additional cash out in HYSA and continue investing?

like
Posting as :
works at
You are currently posting as works at

Doesn't seem like unless you just want to be debt-free. Don't forget the tax benefits if you're taking itemized deductions too.

like

I think you just answered your own question

like

It’s just math and you answered it for yourself. Congrats on that low mortgage rate I’m SUPER jealous

like

To be honest, you need to factor in that the majority of your mortgage payment is going to interest now. How much are you making in HYSA vs the annual interest for mortgage?

So although the rate is just 2.5%, how much of that overtime in interest. I would encourage paying additional on the principle of the mortgage, and paying bi-weekly if not already to knock down the overall interest paid. Then try to pay off within 15 years.

Also, with new tax code, to itemize you have to have considerable deductions above standard, and based off what you stated, it doesn't seem like might be the case. I don't know everything though, so you'll need to check if your mortgage interest will impact that.

Yeah correct 5% on HYSA with around $150k in it now.

At 2.5% interest, it makes absolutely no sense to pay it off early, especially if you're disciplined enough to invest the money you would have used to pay it off faster.

Math is math and you're thinking about it in the right way.

Agreed with others. However, the only other thing to think about is whether or not this house will be your forever home. If not, then it really doesn’t make sense to pay extra to try and pay it off.

Related Posts

What’s up with people talking about withdrawing from retirement due to CARES Act and investing elsewhere?

like

What are all the ways to save income tax?
CTC 9.8L

Can I make rental agreement as paying rent to my dad for tax savings .. I would like to mention 46k per month as rent .. Please help .

likehelpful

Tether is a giant fraud. How do I short it?

like

SNAP - 5/22 $18p, b/e $16.86

like

TC New grad Software Engineer
Base: $110k
Sign-On: $35k
RSU: $120k/3years
Relocation: $20k

Starting fresh with virtually $0 savings and $0 worth of financial literacy, whats the best course of action? any advice is greatly appreciated!

like

Newbie to investing. What are good online courses / books to get smart on investing?

like

why rent over buy; seems like “throwing money” away?

like

Need advice. Have some credit card debt that I’ve been working to pay off. Have made progress but want to lower it quickly. We have dual income, with a house (~$300k in equity), 1 kid and 1 on the way. I’ve looked into debt consolidation via HELOC but also have ~$80k in vested equity in my company that I haven’t touched. Get equity refreshes every year. Would it be smarter to cash out $15k-$20k of that to pay debt vs. a HELOC at ~5% given that will still require mthly payments

like

Would ETH be the next BTC?

like

In the 6 years of our married life me and my husband have always had differences.
One thing we stuck to was not to care about expenses like we saved together, spent together...my salary was his and vice versa...
I have differences with his side of the family...but recently I got to know that he has been buying crypto for his brother without my knowledge.
Mind it that his brother is very well off but for some reason he can't buy crypto himself since he is in India.
Knowing my husband...contd...

like

My Last working date at Wipro is 12th of june 2022, So How tax will be calculated for the financial year 2022-2023. My CTC is 8.4L
I will be working only 3 months for this financial year and in April month payslip i can see 6K deducted for tax and in the IT projection it shows around 30k tax deduction gonna happen. I will be joining another Firm in same june month
Please share how tax is calculated in my case and how to save taxes.

Best high yield savings products?

like

Would you prepay your mortgage (2.75%) or invest? Would you refinance 15 year or 30yr? I understand that over a long run, you can invest the difference and increase wealth. But it generally takes 10+ years to break even. What’s your reason NOT to do the 30yr mortgage?

like

Anyone buying amzn ahead of earnings today?

like

Any good ideas to keep your day job and start a business that allows for enough freedom to take taxable income from 350k to 0?

like

Are investment properties good for retirement?

like
like

Anyone know of any standards, or have any opinions, on naming in-house counsel as a named fiduciary of their company's 401k plan? Pros and cons?

like

Anyone have a contrarian opinion on a trend / investment theme going on in the private investing world, particularly tech investing? Feels like everything is painted in the “huge growing market with tons of white space” lens.

like

More Posts

What’s big law like in San Francisco? Anyone have any insights to firm cultures or billable targets?

like

Please help me to calculate the in hand salary for this CTC. Thanks.

Post Photo
helpful

I received an offer for 80k to work as a desktop engineer for TCS at one of their client’s locations. However, I have seen poor reviews for working at TCS and I’d like to get some feedback from anyone currently or had previously worked for that company. What is the environment like and has anyone been in a situation where the contract with TCS and the client ended and had trouble with TCS finding them a new role at the same pay?

Locums-are you flying or driving to assignments? If flying, how are you dealing with flight changes?

like

Anyone having any experience working for NetApp account in TCS ? Would like to know about the experience. Thanks.

like
likeuplifting

Conuslting ——— vs. ——— Data Science + Machine Learning ??? $$$$

like

Just read Super Pumped!! Made me realize only a madman like Travis could’ve upended the taxi/ car industry. Anyone else read it?

like

List of info people are interested in:
Age, sex, location, ethnicity, religion, height, insta handle (if shameless plug), one fun fact about yourself, what you’re looking for

like

Thoughts on the VC Royal Eagle? Seems crazy undervalued, you can get it for less than a DateJust! What am I missing here?

like

Hi Guys,
I've provided all the details related to my employment, Qualifications and CCTC to HR very correct but I've miscalculated fixed and variable pay, will there be any issues on BGC?

Please help!

like

Anyone else stuck here without family? I'm in SF and my roommates are going home to their families tonight and i'm going to be alone, it's going to be a long 3 weeks..... 😭😭😭

like

I'm feeling a lot of anger towards my manager (now he's acting normal but there were moments where he was condescending/dismissive/mocked my and others work/arrogant/said stuff was "wrong" constantly/belittling the difficulty of tasks etc. in the past project).
Maybe it is "standard chewing out" but it bothered me a lot. So much that I find myself still getting all fired up inside thinking about it...
Idk how to let go of this :/ Thoughts?

like

Hi all, I have been practicing for 5 years (admitted in NY & NJ) and recently went in house. I just started a side business of writing blog posts for firms or solo practitioners. DM for more info!

like

Does anyone have any insight regarding compensation for the “of counsel” position? I’m specifically looking for insight from those in California. Thank you!

like

Is there point in applying to roles without referral? I’ve a strong background but hearing nothing on applications and don’t want to waste a shot by direct application into the void and having to wait to reapply

like

Is an MBA really worth it?

What does an online MBA look like in terms of class time, work load, realistic time to complete etc?

like

From the day my firm files my green card application, how long will I have to wait to be approved and receive my green card? For further context, I was born in China and only have an undergrad degree.

like

Bumble is going public with their IPO. Anyone planning to invest? 😅

like

Additional Posts in Seattle

Just bought a house not too long ago and I want to Air BnB it out but was curious to know what kind of guests Seattle attracts? I have kids so I'm on the fence (moved from LA and refused to do Air BnB there because..it's LA).

Any one planned or attended an Indian wedding in Seattle or New Jersey area? Can you please personal message me? I’m planning my wedding in December and would like some insights. Thank you!

like

Been in Seattle for ~1 year and something I’ve observed is the constant s*it-talking of the city from the locals. Is this because they haven’t experienced other places? While the current homelessness in the city needs to be handled, crime is still relatively low compared to other major cities. The complaints about gloominess also seems a bit dramatic. I’m from the NE and am so grateful to not be dealing with snowy winters and sweltering summers.

like

What are some of the best breakfast/brunch spots in Seattle? I just moved here and I am looking for some hot spots

like

Where do you all take folks when they come to visit you? I'm still pretty new so after the needle and Starbucks idk where else to go

like

Has anyone found some flower shops around the city that sell flower bouquets as inexpensive and incredible as the ones found in pikes place?

like

New to the city.
How do you all get through the constant gray and gloom? Especially with the lockdowns: with gyms closed, and constant drizzle - what outdoor activities do you do?

like

Seattle vs chicago for accounting majors post graduation???

like

Can anyone recommend an endocrinologist? Specifically for Hashimotos. Thanks in advance

like

Any good Christmas party networking events? Thanks!

like

Is it worth to buy an apartment in Vancouver and working remotely?

like

What is the recommended minimum income I need in Redmond / Seattle with a family with 2 kids? I've got a job offer ~250k$ and would move from Europe to the US.

like

Maxi puffer jacket recommendations for the upcoming cold weather…. Go!

like

Are there any lawyers in this bowl that deal with tenant / landlord issues or does anyone have any referrals?

like

I am moving from Germany to Seattle soon. What should i do first to explore the real Seattle? And what should my new hobby be?

like

Anyone who moved from NY/NJ to Seattle? I had some questions about how you feel about your move and transition.

like

One month later, I still can't find toilet paper. Any stores that you know restock tp regularly? TIA

How is Issaquah Highlands? Good neighborhood?

like

Anyone else been impacted by the teacher strikes?

like

Any realtor recs? Looking to buy in Seattle

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal