Posted on: 09th Sep, 2010 07:51 pm
my mom has $144,000 and wants to use part of it to pay off her mobile home to lessen her monthly expenses. she owes $28,000 at 11% interest. some have said that someone her age should keep as much of their money liquid as possible and that maybe she could refinance the loan. others point to the fact that she will be spending less per month and is paying a lot in interest each year. she lives on ssi income, no real income to justify having the tax deduction. she also has in home care that she pays for with the possibility that she could require more in home care as she continues to age. we would like her to remain in her home as long as possible.
Welcome nichelleat,
Rather than refinancing the mobile home and starting off the loan term again, it would be a better option to pay off the loan in order to make the property free and clear of all liens. She won't remain responsible for paying the monthly mortgage payments. Also, she will be able to save money as she won't have to pay the interest.
Rather than refinancing the mobile home and starting off the loan term again, it would be a better option to pay off the loan in order to make the property free and clear of all liens. She won't remain responsible for paying the monthly mortgage payments. Also, she will be able to save money as she won't have to pay the interest.