• Question
  • mortgage/retirement

    Asked by someone from Moose Lake, MN on 7/17/2014

    We currently have a 30 year mortgage with about $100,000 outstanding. My husband is semi-retired and I will be retiring in 2018. I have close to my outstanding mortgage amount available in my 401 K. Would it be wise to wait and pay off the mortgage after I retire or should we refinance now and switch to a 15 year mortgage and then pay it off? My current interest rate is 4.25 %. We will not have enough income to pay the house payments after I retire. Would it make any sense to pay off the current mortgage now before I retire? Or would the tax hit be to big to justify this?

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  • Categories: Paying Off Debt, Retirement Planning

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Hi - one of our advisors has done a great write up on this - you can find it here:

    https://www.newretirement.com/answers/bud-hebeler/paying-off-a-mortgage-early.aspx

    Hope this is helpful.

  • Login to rate this answer:   Answered on 7/19/2014
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.