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Updated about 4 years ago on . Most recent reply

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Doug Spence
  • Investor
  • San Diego, CA
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Sell my AAPL to pay down Mortgage?

Doug Spence
  • Investor
  • San Diego, CA
Posted

Hi Everyone! I purchased 32 shares of AAPL a few years ago, and it has nearly tripled in value since. I own two investment properties (closing on my third in two days), and I want to start paying down these mortgages, in addition to saving for more properties. 

Here are the numbers:

32 Shares AAPL current mkt value - $6,384 

Long-term capital gains tax (20%) - $820

Total amount left to invest in mortgage - $5,564

Principal left on mortgage - $62,000

Interest rate - 5.25%

I want to pay down this particular mortgage first because it has the smallest principal remaining, and the highest interest rate. I save enough from my W-2 job to meet my goal of purchasing one property per year, while also putting about 25% of my income into retirement accounts, so I would use this money to pay down the mortgage.

Do I capture AAPL around $200/share right now to pay towards the mortgage? Standing by for thoughts and suggestions...

Most Popular Reply

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Alexander Felice
  • Guy with Great Hair
  • Austin, TX
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Alexander Felice
  • Guy with Great Hair
  • Austin, TX
Replied

Iet me make sure I'm reading this right. 

you want to sell $6k worth of equities in one of the hottest stocks of all time, to pay down 10% of your mortgage locked in at 5.25% 

if that's what you're asking, then you should absolutely not do it.

let your money make money. your mortgage rate is CHEAP and you'll experience zero cash flow difference from paying it down and not paying if off. 

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