Posted on: 12th Mar, 2009 08:33 am
AM A RETIREE - SHOULD WE PAY OFF MORTGAGE BALANCE OF 140k ? CD'S BEING CALLED. SO INCOME IS REDUCED. MORTGAGE PAYMENT IF $950/MO. AND I WOULD LIKE TO LOWER LIVING EXPENSES. WHAT MAKES SENSE?
Hi Rossicp,
It would be better if you could pay off the mortgage. If you don't pay the mortgage or suddenly stop paying the mortgage, the property can go into foreclosure. This will badly effect your credit report. However, if you are facing hardship in paying off the mortgage, then you should inform the lender about it and check out if he could offer you any option.
It would be better if you could pay off the mortgage. If you don't pay the mortgage or suddenly stop paying the mortgage, the property can go into foreclosure. This will badly effect your credit report. However, if you are facing hardship in paying off the mortgage, then you should inform the lender about it and check out if he could offer you any option.
there is a lot to consider here. first of all, do you have any more than $140k in cd's? if you have a comfortable amount left over, a nice cushion then my suggestion would be to pay the home off as soon as possible.
your home is just as much security as having a nest egg in the bank.
but, consider your tax implications in doing so. consider your mortgage interest deduction and ask your cpa how this will change your tax situation for next year.
depending on a lot of factors you may want to refinance the home and pay it down to 60-70k and keep some cash in the bank while holding on to some tax deductions.
personally, the thought of having a paid off home and very few, or even, no bills every month is very tempting.
best of luck, talk to you cpa and financial advisor to get the whole story!
your home is just as much security as having a nest egg in the bank.
but, consider your tax implications in doing so. consider your mortgage interest deduction and ask your cpa how this will change your tax situation for next year.
depending on a lot of factors you may want to refinance the home and pay it down to 60-70k and keep some cash in the bank while holding on to some tax deductions.
personally, the thought of having a paid off home and very few, or even, no bills every month is very tempting.
best of luck, talk to you cpa and financial advisor to get the whole story!
Would also need to know what your interest rate is and whether you needed that $140k as a source of income.
