Should I auto sell RSUs to pay my mortgage?
Just finished my taxes and realized that I’m paying a significant amount of post-tax money to the interest. Want to ask the blind community to see if there’s anything wrong with my logic.
I owe $1.1M in mortgage principle. That comes out to about $45K in interest per year. Given that I bought my home last year, the cap for mortgage interest is $750K. That means I can only deduct 750/1100 * $45K = $31K; the remaining $14K is post tax money.
The above means that (at 50% tax rate) I’m paying the gov another $14K in taxes per year (so $14K to the gov and $14K to bank in interest). This is more than what I can make in mutual funds. I’m thinking of just paying down the principle as fast as I can, by also putting all my vesting stock into my mortgage payments.
Do you agree? If not, let me know why in the comments. Thanks!