Hi All,
I am going back and forth over whether I should pay off my mortgage. Here are the factors that are involved.
First, I am 71 years of age and live Washington state. I have about $68,000 remaining on my home loan at 4.5% interest. The house sold for $247,000 5 years ago, and I put 75% down. I have a bank account about $95,000, and investments of $210,000 with TIAA (CREF stocks, bonds and TIAA real estate). My pension with social security comes to about $6000/month before taxes. That income increases anywhere from 1 to 2% a year. I can comfortably live on $65,000 a year at the moment. I'm single.
If I were to pay off my mortgage, my bank account would drop to about $25,000, but I'd save $242 that I pay on interest. If I ever needed more money in an emergency, I suppose I could use the house to get that loan, but I just don't see that happening.
I plan on selling the hose in the next 2 or three years and move to a townnhouse with less yard work
I really welcome feedback. Paying the mortgage of $645/month (including property tax and interest) is not difficult, but am I better off paying it off?
Thank you very much.
Rob
I am going back and forth over whether I should pay off my mortgage. Here are the factors that are involved.
First, I am 71 years of age and live Washington state. I have about $68,000 remaining on my home loan at 4.5% interest. The house sold for $247,000 5 years ago, and I put 75% down. I have a bank account about $95,000, and investments of $210,000 with TIAA (CREF stocks, bonds and TIAA real estate). My pension with social security comes to about $6000/month before taxes. That income increases anywhere from 1 to 2% a year. I can comfortably live on $65,000 a year at the moment. I'm single.
If I were to pay off my mortgage, my bank account would drop to about $25,000, but I'd save $242 that I pay on interest. If I ever needed more money in an emergency, I suppose I could use the house to get that loan, but I just don't see that happening.
I plan on selling the hose in the next 2 or three years and move to a townnhouse with less yard work
I really welcome feedback. Paying the mortgage of $645/month (including property tax and interest) is not difficult, but am I better off paying it off?
Thank you very much.
Rob