Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Refi or pay off mortgage with cash
Old 05-28-2012, 06:21 AM   #1
Dryer sheet wannabe
 
Join Date: Nov 2007
Posts: 13
Refi or pay off mortgage with cash

I'm 55 and my girlfriend and I have split up and we have joint ownership of the house. House was purchased around 10 years ago for 210,000. I think the current value is around 180,000 (after putting tons of improvements into it, but that's another story). She has choosen to live in another town and I need to stay in this town for probaby a year (before I retire) or maybe more. My question regards whether to refinance the house (I'd do a 10 year @ 3.12) or pay it off in cash (I recently liquidated 200,000 in mutual funds) and pay off my ex for her intrest. To further complicate the matter I'm not sure if I want to stay in this state after I retire. If I do stay in the state it would be in a town 45 minutes away from this house so I could oversee it as rental property. No matter where I end up living I plan on putting the fixed income portion of my portfolio into a couple of rental houses instead of bonds. The current interest rate on the house is about 5.87 so I'm really thowing money out the window right now. If I do decide to refinance I'd like rent it out and hold it at least until the loan is paid off before selling the property. Maybe by then the bond market will have nomalized.
Anyway I'd appreciated any advice/suggestions

Thanks,
Bob
__________________

__________________
Synergy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-28-2012, 07:32 AM   #2
Thinks s/he gets paid by the post
Huston55's Avatar
 
Join Date: Jul 2011
Location: The Bay Area
Posts: 1,802
Synergy-

You'll find multiple threads here on this very subject; suggest you investigate those. From a personal POV, I was recently faced with a similar choice (pay off Mtge or not) and I chose to pay it and retain the property (a rental) for income purposes. However, you will find other POVs on the referenced threads. One thing for sure, you can find a better Mtge rate.

Best of luck.
__________________

__________________
You may be whatever you resolve to be.
Huston55 is offline   Reply With Quote
Old 05-28-2012, 12:13 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Seems like you won't be there long. I'd think about selling it and renting. Clears up the house value if you and ex still have an interest in it. No big loan, no ties when you're ready to move in a year. On the downside, you'd have to move, though that is coming soon anyway.
__________________
Animorph is offline   Reply With Quote
Old 05-29-2012, 04:24 AM   #4
Dryer sheet wannabe
 
Join Date: Nov 2007
Posts: 13
Thanks for the replies.

I'll try some different search terms and see what I can come up with.

I have considered the sell and rent idea but I'd have to move twice and that's a big job.


Cheers,
Bob
__________________
Synergy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 12:25 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.