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red 928 red 928 is online now
Location: Galt's Gulch
 
Join Date: Jul 2019
Posts: 5,035
Lets do some maths:
6.5% interest on a home loan, the majority of the monthly payment is interest which is tax deductible in a primary residence but you said it was a rental.
Assuming the interest is not directly deductible it could still be expensed to offset rental income.
Loss of that write-off could potentially have tax repercussions on that rental income but that can get complicated and has many variables so we're going to ignore that aspect for now.
Assuming a very conservative annual inflation rate of 2 percent would
make the effective interest rate being paid on that loan in the ballpark of 2%.
Maybe more, maybe less.

Even investing very conservatively and diversified, I expect to make on average at lest 10% on equity investments.
Truth be told the average return over the past has been well over that number and LTCG taxes are still reasonable.
So no, I personally would not sell stocks to pay off that mortgage.

What I might do would be to put that question to my CPA instead of a bunch of yahoos on an interweb forum
Old 09-06-2025, 12:23 PM
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