We currently have a 650K mortgage on our house at 3.625 % with 8 yrs left on the 15yrs term. I was always thinking with fixed income returns being so low these days it might make sense to payoff the mortgage. Now with the new tax act, it looks like it might make more sense. We will be entitled to 11K of additional deduction if we itemized vs standard. That means we are losing the benefit on 13K of mortgage deduction.
One option is to use part of our current fixed income allocation which has a duration of 4.3 yrs to pay off the mortgage. Then using the cash flow saved each year to allocate back in to maintaining a 60/40 portfolio allocation.
Second option is to wait for a possible distributions from my DW old private equity to come in ( within a year or two), and use that amount to pay of the mortgage.
Or do nothing. Thanks for your input.
One option is to use part of our current fixed income allocation which has a duration of 4.3 yrs to pay off the mortgage. Then using the cash flow saved each year to allocate back in to maintaining a 60/40 portfolio allocation.
Second option is to wait for a possible distributions from my DW old private equity to come in ( within a year or two), and use that amount to pay of the mortgage.
Or do nothing. Thanks for your input.
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