Hi, all; I have a similar question about a possible refinancing and condo purchase, and thought this might be the string to ask...
Currently 66 and "semi-retired"...working about 100 or so days year; spouse (58) is taking a "sabbatical" to finish her Ph.D. after taking early retirement from an international development bank. In addition to my p/t income (about $80,000/year), we collect about $155,000 in cola-ed annuities and have another $120,000 in cola'd annuities and social security kicking in in the next 3 years....plus about $4.5 million in other liquid assets (40/60 post tax/retirement). So we're in pretty good shape.
Currently own an urban town house in high income/high tax area that we love, worth about $1.2-1.4 million with a 4.75%, 30 year mortgage (in the seventh year). Thinking of refinancing with a 2&7/8% 15 year mortgage, which will cost us an extra $600/month ($5,000 total vs. $4400, including taxes & insurance). So, we pay a little more each month, but we pay off the loan much quicker with MUCH less interest. Seems like a no-brainer, but....anybody have any thoughts?
Also, thinking of soon buying a second home (condo) in a no-tax state (FL) and making it our primary residence. This would save us $25,000/year or more in state income tax when our additional annuities and RMD's kick in. Our understanding is that we couldn't spend more than 183 days in our current residence, but that would probably work if we combined it with 2-4 months each year traveling and 2-4 months per year in FL. Anybody have any experience with this kind of thing?