@mikealfred Most states allows a tax write off in interest paid on $750k of mortgage debt. Thats actually the perfect amount of mortgage to be holding as it’s tax advantageous

@tatianakoffman Let’s say, hypothetically, you have $30M of income in 2025, how helpful is the interest deduction on a $750,000 loan?

@mikealfred @mikealfred Do you think that zero debt is the right way to live?

@Tamishsh It’s an individual decision. I am grateful to have the ability to live with zero debt and don’t care what anyone thinks about it

@mikealfred Why do you need peace of mind of paying off your mortgage?

@brent_e_trader Why do I need a Range Rover and Napa cult wines? Don’t be silly.

@mikealfred Would you have decided differently if the interest rate was 3% or something near that

@AssetJunkie Maybe but I make decisions in the real world, not on hypotheticals

@mikealfred Wealthy people don't take out mortgages.

@Gauss93507131 LOL. Yes they do. Most wealthy people love to use leverage.

@mikealfred I have 6.25% 650k mortgage and can pay it off but I’d rather take risk on the stock market and have much higher returns…so far. A simple etf tracking s&p 500 should make you that 10%. So by not paying off the mortgage I get 10-6.25=3.75% on 650k I wouldn’t otherwise have

@mikealfred I owe $65k with less than 30 payments left. Interest rate is 2.375%. I can pay it off 100 times over, but why? It’s the cheapest margin loan I can get, I’m 100% invested in the stock market and the little bit of mortgage interest helps defray my capital gains tax.

@mikealfred Interested to hear if they charged you a fee for paying off the remaining mortgage in full? Most banks will do this. If it was a rate of 6.75% and not variable I assume they did?

@mikealfred At a 6.75% rate, paying off the mortgage would make sense in many respects. The general rule of thumb I teach clients is to double your interest rate to find the rate of return (after taxes) that you would have to earn in order to account for the risk compared to the risk-free

@mikealfred Debt is for building wealth, not for primary housing. If talking about wealthy people, no real wealthy person is buying primary housing with debt at 6.75% to begin with.

@mikealfred There's a huge difference in paying off 6.75% than 2.75% but go off!

@mikealfred Based on current treasury rates, I’m not surprised people who think this is stupid are poor. 😂

@mikealfred lol anyone under $5mil is poor guys.

@mikealfred Congratulations! You can finally relax. In terms of math, prepaying 6.75% (even 6.25% after 50 bps) is a risk-free return ≈ your borrowing cost after taxes. "Smart" is dependent on liquidity requirements and alternative returns. On leverage, wealthy people disagree; fit > flex.

@mikealfred why would you pay that off and not using that instead to make considerably more than 6.75% roi? i agree with peace of mind being priceless though.

@mikealfred My peace of mind is knowing my mortgage balance has an average market return above 15% annually vs. a 3% mortgage interest rate.

@mikealfred What if the rate was 2.6%?

@mikealfred I think the anti pay-off folks are focused on historically low interest debt, not a 6.75% rate. I don’t think anyone would argue against paying off your debt $800k at that rate. Congrats btw

@mikealfred 6.75 you pay off. Sub 4 you dont. Why didnt you just pay cash for the house (you must have bought recently with that rate).

@mikealfred Debt leverage is for people still climbing, simplicity is for people who've already climbed..

@mikealfred 6.75% risk free return sounds great to me

@mikealfred And you still don’t own it… leasing from the govt every year in the form of real estate taxes.

@mikealfred You think you have peace of mind? I stayed at a Holiday Inn Express last night.

@mikealfred Sorry, I will keep my sub-3% fixed mtg for another 23 years. I have little mind left in pieces & feel plenty wealthy in my peace of mind with sizing it against my risk.🙏🕺🥰

@mikealfred It’s only math. Not emotional or mental decisions. At 675bps this makes sense. At 250bps it wouldn’t.

@mikealfred Everyone is getting hung up on the interest rate... But it doesn't matter. If you want the peace of mind, pay off your house and enjoy having one more large expense/risk off your back! Now you have that much more to invest every month!👌🏼🤷🏼‍♂️

@mikealfred You didn’t pay off a sub-3% mortgage. You just got a risk-free rate of return of 6.75% which is a higher risk free rate of return you can get anywhere else. You’re conflating issues between a high and low rate. Your thoughts and feelings don’t matter when comparing apples and

@mikealfred I have millions in the markets and I’m happily paying down a 2.31% mortgage. I have peace of mind already. I also have an extra several hundred thousand dollars in the market earning 5 times what that mortgage costs.