All things STOCKS

[Jax_Vol]

Need your opinion/advice

There are some smart people and in here and I am wondering what you all would do if you had 200K available to do something with:

- Buy real estate
- Invest
- Start a business
- Private equity
- Pay down mortgage debt to reduce total interest owed

I am leaning towards the paying down some mortgage debt - here are the scenarios ... would love all of your opinions:

I have $200,000+ available that I would like to put to use on some existing mortgages that I currently have. I ran some payoff scenarios to compare total interest savings and time to payoff, and I’d really value your point of view on which tradeoffs make the most sense.

Current loans I am considering (I have two other properties that I can't do anything with):

• Lakeview (Florida): Balance $425,445.54 at 6.9%, payment $2,862/mo (principal & interest), about 29 years remaining
• Rocket (CO): Balance $217,751.99 at 1.9%, payment $2,033.32/mo (principal & interest), about 9 years 10 months remaining

Baseline (no lump sum applied):

• Estimated future interest across both loans: ~$558,668

---

Options I modeled with the $218,000k (the amount to payoff Rocket in full)

Option A — Apply the full $218k to the Lakeview loan (6.9%) and keep paying $2,862/mo

• Estimated total future interest (both loans): ~$82,743
• Estimated interest saved vs baseline: ~$475,925
• Lakeview paid off in roughly ~7 years 11 months
• Rocket continues as-is and finishes in ~9 years 10 months (this becomes the “last loan standing”)

Why it stands out: Highest rate first = biggest guaranteed interest reduction.

---

Option A2 — Apply $218k to Lakeview and recast to lower the required payment

• Estimated recast required payment: ~$1,377/mo (instead of $2,862)
• Estimated total future interest (both loans): ~$296,869
• Estimated interest saved vs baseline: ~$261,799

Why it’s attractive: Big drop in required payment (more flexibility), but less interest savings than Option A.

---

Option A3 — Recast Lakeview, but still pay $2,862/mo

• Required payment would drop to ~$1,377, but I’d keep paying $2,862
• That’s effectively ~$1,485/mo extra principal vs the required payment
• Result: payoff speed and interest savings are basically the same as Option A, but with lower required payment if I ever needed to throttle back

Why it’s compelling: It’s a “have the flexibility, keep the payoff speed” approach.

---

Option B — Pay off Rocket (1.9%) completely

• Estimated interest saved vs baseline: ~$22,508
• Frees up $2,033/mo immediately

Why it’s a candidate: Cash-flow/peace-of-mind, but mathematically weak on interest saved because the rate is so low.

---

Option B2 — Pay off Rocket, then roll that $2,033/mo into Lakeview as extra payment

• Estimated total future interest: ~$165,651
• Estimated interest saved vs baseline: ~$393,017
• Lakeview paid off in roughly ~10 years 1 month

Why it works: Still strong, but less efficient than putting the lump sum straight into the 6.9% loan first, but this gives cash flexibility that the first options doesn’t.

Would one of these scenarios be better or should I just consider leaving these and doing something else???

If you made this this far, thanks for reading

Per 5 minutes of read/thought.
1. Keep the 1.9% for the full 10ish years.
2. Again, without much thought...I'm throwing the $218k at the 6.9% and continuing max payments. That amount cuts loan in half and greatly increases the amount going to the principal.

Disclaimer: Tax angles, peace of mind, etc not considered.

 

[SpringBokVol]

Per 5 minutes of read/thought.
1. Keep the 1.9% for the full 10ish years.
2. Again, without much thought...I'm throwing the $218k at the 6.9% and continuing max payments. That amount cuts loan in half and greatly increases the amount going to the principal.

Disclaimer: Tax angles, peace of mind, etc not considered.

This is where I am leaning.

It's the peace of mind of paying off the one house fully that I am struggling with.

 

[Jax_Vol]

This is where I am leaning.

It's the peace of mind of paying off the one house fully that I am struggling with.

Yup!

I had a variation of the puzzle last summer. Ended up paying one off.

I was willing to let it ride and roll the dice. However, my wife needed the peace of mind.

So, knew that was going to be a never-ending sore point until we closed it out.

 

[Thunder Good-Oil]

100% keep the 1.9% mortgage.

The 6.9% mortgage is less clear. Is the interest written off for personal income taxes which reduces the effective cost of the loan?

Investing in securities has the benefit of being liquid. Also, if you have a salary or earn wages then investing in a Roth IRA is an excellent option.

Buying more real estate or starting a business are much more lucrative if you have the time and ability to create sweat equity.

Private Equity could mean investing directly in a business or turning funds over to a broker to invest in PE. The latter probably requires being an accredited investor. In either case, know who you’re are dealing with and their track record.

 

[OldandStillaVol]

Need your opinion/advice

There are some smart people and in here and I am wondering what you all would do if you had 200K available to do something with:

- Buy real estate
- Invest
- Start a business
- Private equity
- Pay down mortgage debt to reduce total interest owed

I am leaning towards the paying down some mortgage debt - here are the scenarios ... would love all of your opinions:

I have $200,000+ available that I would like to put to use on some existing mortgages that I currently have. I ran some payoff scenarios to compare total interest savings and time to payoff, and I’d really value your point of view on which tradeoffs make the most sense.

Current loans I am considering (I have two other properties that I can't do anything with):

• Lakeview (Florida): Balance $425,445.54 at 6.9%, payment $2,862/mo (principal & interest), about 29 years remaining
• Rocket (CO): Balance $217,751.99 at 1.9%, payment $2,033.32/mo (principal & interest), about 9 years 10 months remaining

Baseline (no lump sum applied):

• Estimated future interest across both loans: ~$558,668

---

Options I modeled with the $218,000k (the amount to payoff Rocket in full)

Option A — Apply the full $218k to the Lakeview loan (6.9%) and keep paying $2,862/mo

• Estimated total future interest (both loans): ~$82,743
• Estimated interest saved vs baseline: ~$475,925
• Lakeview paid off in roughly ~7 years 11 months
• Rocket continues as-is and finishes in ~9 years 10 months (this becomes the “last loan standing”)

Why it stands out: Highest rate first = biggest guaranteed interest reduction.

---

Option A2 — Apply $218k to Lakeview and recast to lower the required payment

• Estimated recast required payment: ~$1,377/mo (instead of $2,862)
• Estimated total future interest (both loans): ~$296,869
• Estimated interest saved vs baseline: ~$261,799

Why it’s attractive: Big drop in required payment (more flexibility), but less interest savings than Option A.

---

Option A3 — Recast Lakeview, but still pay $2,862/mo

• Required payment would drop to ~$1,377, but I’d keep paying $2,862
• That’s effectively ~$1,485/mo extra principal vs the required payment
• Result: payoff speed and interest savings are basically the same as Option A, but with lower required payment if I ever needed to throttle back

Why it’s compelling: It’s a “have the flexibility, keep the payoff speed” approach.

---

Option B — Pay off Rocket (1.9%) completely

• Estimated interest saved vs baseline: ~$22,508
• Frees up $2,033/mo immediately

Why it’s a candidate: Cash-flow/peace-of-mind, but mathematically weak on interest saved because the rate is so low.

---

Option B2 — Pay off Rocket, then roll that $2,033/mo into Lakeview as extra payment

• Estimated total future interest: ~$165,651
• Estimated interest saved vs baseline: ~$393,017
• Lakeview paid off in roughly ~10 years 1 month

Why it works: Still strong, but less efficient than putting the lump sum straight into the 6.9% loan first, but this gives cash flexibility that the first options doesn’t.

Would one of these scenarios be better or should I just consider leaving these and doing something else???

If you made this this far, thanks for reading

Without knowing your net worth, your plans for how long you plan to keep these properties, or how much the appraised value of the properties compares to your mortgages, it's a little difficult for me to give advice.

For me, that amount of total mortgage (age 69) would be uncomfortable so yes, I would use 200k to reduce debt. Assuming you want to keep both properties long term, I'd probably go with Option A or A2. I don't know anything about Colorado. Living in Fl, I do not see any large downturns in real estate values anytime soon.

 

[Thunder Good-Oil]

Nice reversal this morning. It started out looking like another big down day to follow up yesterday. Now yesterday’s loses are close to being wiped out.

I was too early slow to close my short RH 200 calls. But you’re never supposed to regret booking a profit. I’m just going to get called on the shares. I just wish that I had sold at a higher strike, but the premium wasn’t there at the time.

 

[SpringBokVol]

Without knowing your net worth, your plans for how long you plan to keep these properties, or how much the appraised value of the properties compares to your mortgages, it's a little difficult for me to give advice.

For me, that amount of total mortgage (age 69) would be uncomfortable so yes, I would use 200k to reduce debt. Assuming you want to keep both properties long term, I'd probably go with Option A or A2. I don't know anything about Colorado. Living in Fl, I do not see any large downturns in real estate values anytime soon.

Good point - net worth around 3.5m, age 45, currently working (w2 income and rental property income).

The properties in question and I don't plan to sell them:

• Lakeview (Florida): Balance $425,445.54 - Estimated Value $650,000
• Rocket (CO): Balance $217,751.99 - Estimated Value $700,000
  
  ​

 

[Thunder Good-Oil]

Max out Roth IRA contributions first. Contribute to any 401(k) up to the employer’s match.

The large ETFs and similar funds are good places to put uninvested cash that won’t be needed for several years. S&P 500 and QQQ styles/themes.

VOO. IVV. SPY. VTI. QQQ. VUG. VEA. VTV. IEFA. IEMG. IWF. VXUS. VGT. VWO. IJH. VO. VIG. The 11 State Street Select Sector funds (especially XLK). SMH. RSP.

 

[Jax_Vol]

Max out Roth IRA contributions first. Contribute to any 401(k) up to the employer’s match.

The large ETFs and similar funds are good places to put uninvested cash that won’t be needed for several years. S&P 500 and QQQ styles/themes.

VOO. IVV. SPY. VTI. QQQ. VUG. VEA. VTV. IEFA. IEMG. IWF. VXUS. VGT. VWO. IJH. VO. VIG. The 11 State Street Select Sector funds (especially XLK). SMH. RSP.

Yes, he is correct IMHO. That is the proper order. Always get Roth ($8,600/each this year) and the max match in any type of employer program.

6.9% is a little too high for my personal taste. If it was 5%, then we can beat that. In between, who knows?

The last 2-3 years have been so strong that 6.9% would have worked. However, if I had to bet on 2026....QQQ gain will be lower than 6.9% imo. We are due for a slower year.

 

[SpringBokVol]

Max out Roth IRA contributions first. Contribute to any 401(k) up to the employer’s match.

The large ETFs and similar funds are good places to put uninvested cash that won’t be needed for several years. S&P 500 and QQQ styles/themes.

VOO. IVV. SPY. VTI. QQQ. VUG. VEA. VTV. IEFA. IEMG. IWF. VXUS. VGT. VWO. IJH. VO. VIG. The 11 State Street Select Sector funds (especially XLK). SMH. RSP.

All the Roths/401k, are maxed at this point.

Just trying to figure out if investing the 200K is better than reducing interest on the mortgage. Saving over 400K in interest is appealing but how much could I make investing the 200K over 10 years - could I make a consistent 10%? 12%? 15%?

 

[BigOrangeMojo]

Have you fully funded an HSA?

Could you refinance the 6.9% to something in the 5s?

 

[Thunder Good-Oil]

Have you fully funded an HSA?

Could you refinance the 6.9% to something in the 5s?

Also looking into long term care insurance is a good idea.

 

[OldandStillaVol]

Good point - net worth around 3.5m, age 45, currently working (w2 income and rental property income).

The properties in question and I don't plan to sell them:

• Lakeview (Florida): Balance $425,445.54 - Estimated Value $650,000
• Rocket (CO): Balance $217,751.99 - Estimated Value $700,000
  ​

You are in excellent shape financially and could retire early if you wanted to. I'd probably still pay off some of the Fl mortgage but up to you how much.

 

[SpringBokVol]

Have you fully funded an HSA?

Could you refinance the 6.9% to something in the 5s?

Yes, HSA full as well.

I can refi - with a cost of about 19K - rate would be 5.4 ish. Long term savings on interest but takes 5 years to recoup the cost of the refi.

 

[SpringBokVol]

You are in excellent shape financially and could retire early if you wanted to. I'd probably still pay off some of the Fl mortgage but up to you how much.

My goal is to retire in 10 years - 55. The variables are kids colleges and weddings, houses, mistakes, etc.

 

[Thunder Good-Oil]

10% plus over a long time frame has been the historical constant. With a lot of year to year fluctuations. Including some big drops.

Regular IRAs could be maxed out if your plan is to donate to charities from your estate. That money would never be taxed. Regular IRAs are also a good way to defer taxes which is favorable if income is expected to be lower at retirement. Regular IRAs can also be converted to Roth IRAs as a strategy to add more than tge Roth limits.

If leaving assets to friend or family beneficiaries, the stepped up basis of investments is one of the best tax advantages currently in the IRS code. But the democrats will probably attempt to limit or eliminate that rule if they take back political power.

The $35 trillion ND is going to be a long term challenge. However it is less of an issue if the economy grows and spending increases are managed responsibly.

6.9% is effectively under 5% with a 30% tax bracket if itemizing.

A 6% interest rate on debt investments is only 4.2% in a 30% tax bracket.

Long term capital gains and dividends on investments held long term are taxed at a more favorable rate.

 

[Thunder Good-Oil]

An irrevocable trust could be set up to protect assets from screwing up. But since they are difficult to change, front end planning is extremely important.

Tell variable any annuity sales people to kick rocks. A financial advisor pushing VAs should be fired.

 

[Thunder Good-Oil]

A revocable trust can reduce headaches with probate - especially with children.

Use the transfer on death (TOD) elections on investment and bank accounts to avoid probate and bypass wills.

 

[Jax_Vol]

A revocable trust can reduce headaches with probate - especially with children.

Use the transfer on death (TOD) elections on investment and bank accounts to avoid probate and bypass wills.

Yes, had an "as expected" experience with revocable.

Guess I can ask Google, but when/why would you want an irrevocable?

 

[@1RBFjr]

Yes, HSA full as well.

I can refi - with a cost of about 19K - rate would be 5.4 ish. Long term savings on interest but takes 5 years to recoup the cost of the refi.

With a huge caveat that I am not a professional and I know nothing beyond what you posted, I would put that money towards the Colorado mortgage and get that paid off ASAP. Then I would roll the Colorado payment into the Florida payment and accelerate the payoff there.

If something goes wrong, then you have a paid off house in Colorado. And, looking at your comments, the house in Colorado is worth more than the one in Florida, so you would have a larger debt free asset.

I personally don’t like debt, and I love peace of mind. I could fall over tomorrow and my spouse and my kids will have zero to worry about. I had a few friends tell me about 20 years ago that I sounded like Dave Ramsey, and that was before I knew about Dave Ramsey.

 

[BigOrangeMojo]

Yes, HSA full as well.

I can refi - with a cost of about 19K - rate would be 5.4 ish. Long term savings on interest but takes 5 years to recoup the cost of the refi.

19K is crazy for refinance costs. Check with a local Credit Union down there. I've gone that route where they will have no closing costs (not rolled into loan) but your rate will be higher. It might be 5.9% insteaad of 5.4% (but that's still better than 6.9%)

Typically, its run me about .5% to go that option. That has been my experience with First South in Memphis area...

 

[05_never_again]

19K is crazy for refinance costs. Check with a local Credit Union down there. I've gone that route where they will have no closing costs (not rolled into loan) but your rate will be higher. It might be 5.9% insteaad of 5.4% (but that's still better than 6.9%)

Typically, its run me about .5% to go that option. That has been my experience with First South in Memphis area...

That is batshit insane. Yes, shop around more.

 

[SpringBokVol]

Will def shop around more.

One option I haven’t modeled is refinancing the 6.9% Lakeview loan first (say ~5.9%), applying the $218k so I am only financing $210k.

That combination could be best on total interest saved while also improving cash-flow flexibility and lowering rate risk.

But I still love the idea of paying off a house LOL

 

[DinkinFlicka]

Im going to buy some $ONDS soon.

Welcome to the party.

Been in since 7.95 a couple months ago. Averaged down with covered calls premium but stopped writing them the past few weeks as it has gone bonkers.

 

[Jax_Vol]

Will def shop around more.

One option I haven’t modeled is refinancing the 6.9% Lakeview loan first (say ~5.9%), applying the $218k so I am only financing $210k.

That combination could be best on total interest saved while also improving cash-flow flexibility and lowering rate risk.

But I still love the idea of paying off a house LOL

Back thirty years ago, 2% difference was the magic number preached for when it is time to refinance.

Sometimes companies would try to trick you into that range, by making the refinancing fee outrageous. I'm out of loop, but if they are offering a 1.5% drop with $19k fee, guessing that is a variation of the ole hustle.

Somewhat knowing where the 30-year rates stand right now (6.5-7% range), I don't think you want to refinance yet.

If you don't mind sharing, how did you get a 1.9% loan? I could utilize a whole boatload of that $.