[quote=HLS][quote=matt] I am thinking about paying this off to #1 assure my family a roof over our heads should we ever need it, #2 call me conservative but a guranteed 4.75% for me is a decent return. [/quote]
Nothing wrong with being conservative. Don’t ever let anybody talk you into taking risks that you aren’t comfortable with.
Due to your circumstances, just realize that equity in your home is trapped if you cannot qualify to refi.
Weigh giving up cash vs. having a huge cash cushion. Paying off debt comes at a cost.
Many seniors are house rich but cash poor.
Even with a $1 million dollar home owned outright they may not qualify for a $200K loan. The system is broken.
They may have the option of a reverse mortgage to be able to get some cash, but I am not a huge fan of this loan. It’s another govt creation.
*I may be able to help you with a refi if you’d like to contact me privately. Your situation is unusual and I need more details.[/quote]
Many lenders will lend if you can show an income stream from your investments. If the senior has investments in IRAs – and sets up systematic (monthly, annually, some automatic period) withdrawals – that can be used to qualify.
For younger folks – consider if you want to continue to pay a mortgage after you retire. I’m not in the younger age category – but not retired (yet). I know my projected retirement budget works a LOT better without the mortgage P&I in it. So we’ll be paying off the mortgage in the near term. I don’t understand how people expect to pay large mortgages on limited retirement income streams. But folks seem to be doing that. I’ve done my retirement projections both ways – and I can retire younger if I don’t have a mortgage (with a smaller nest egg).
