Pay more off my mortgage or invest more?
Hi all,
I was curious to hear what you folks would do in my situation. I bought a pre-construction condo that’s set to close some time this summer. I currently have a renter in there that will be moving out at the end of the year, and I will be planning on moving in come January 2025. My question is, should I put a large sum of money towards lowering the mortgage amount come closing time? Or not pay off so much and just keep on investing? The mortgage will be about $469k since I’ve already paid the 20% down payment. I currently have around 200k in the bank, 41k is liquid and the rest is invested mostly in index funds. Keep in mind that some of the money is from my tenant since he paid a year upfront in cash.
I was originally planning to sell most of my portfolio and put about $130k give or take towards my mortgage so I don’t have to borrow so much from the bank at these current interest rates. Would this be the better play as opposed to not putting so much money towards the principle and just keep on investing? Keep in mind that I will also need to have about $24k liquid just to pay off the HST as well.
Put money towards mortgage or keep investing?
byu/Iron_Prodigy infinancialindependence
Posted by Iron_Prodigy
2 Comments
Are you looking to liquidate your assets and put them into your home? I would avoid doing that personally. You don’t mention what your mortgage rate is which would be very helpful to the conversation here.
If you have 20% equity and aren’t paying PMI I’d probably keep a mortgage under 6.5% and hope to refinance it. How much of your income goes to your mortgage, taxes and insurance? Also helpful information.
The market could very well return more and certainly has since the beginning of the year. On the flip side, paying towards the mortgage is a guaranteed return. It will likely make you sleep better at night.
What’s your mortgage interest rate? And what’s family income ?