russ[at]russ.net wrote:
- quote -

You didn't tell us how much the cap gains were on the ESPP. But let's
assume a huge gain of $2500. The difference between short term and long
term gain tax is about 10%, or $250. If the stock price drops a mere 5%
by July 31, then it would have offset the long term cap gains benefit
already.

If I were you, I'd dump the ESPP and pay off the $4000 immediately
while the stock is high.

Hi. The PMI costs go away with a $4000 investment. That's
like making an immediate guaranteed 13% on the $4000.
If you're situation is stable, I would absolutely pay the $4000
ASAP.
Joe

russ[at]russ.net wrote:
- quote -

Use your emergency fund to pay on your mortgage to get rid of PMI.
That's a better than 10% return on your investment.

Wait to sell your stock, but are you sure the stock is overpriced?

--
Ron

OK here's the scenario-

My home is at 83% LTV ratio, another $4000 or so and I can get rid of
PMI (PMI=$43/mo).
I have $5000 in an employee stock purchase plan, but if I sell it
before July 31 I have to pay short term gain tax (1 year from buying
date)
I have $8500 in an emergency fund and am putting $760/mo into it.

Should I sell the ESPP (our company stock price is pretty high right
now) and use it to get rid of the PMI? Or will I be better off waiting
until July 31 to avoid that extra tax?

Or should I re-direct my $760/mo going into emergency fund to home
prinicipal to get rid of PMI?