Pay Off Mortgage?

[MassWineGuy]

Should we pay off our mortgage before retiring? My wife is retiring fully by August. I’ll keep working another couple of years or so, depending on how awful Express gets.

Payoff balance: $116,700
Monthly payment: $1,635 (increases periodically)

Current retirement funds: approx. $1-million, not including Social Security.

 

[IVE GOTTA PACKAGE 4U]

Should we pay off our mortgage before retiring? My wife is retiring fully by August. I’ll keep working another couple of years or so, depending on how awful Express gets.

Payoff balance: $116,700
Monthly payment: $1,635 (increases periodically)

Current retirement funds: approx. $1-million, not including Social Security.

Hats your interest rate?

 

[AB831]

Should we pay off our mortgage before retiring? My wife is retiring fully by August. I’ll keep working another couple of years or so, depending on how awful Express gets.

Payoff balance: $116,700
Monthly payment: $1,635 (increases periodically)

Current retirement funds: approx. $1-million, not including Social Security.

I would and then I’d quit FedEx and get a job that doesn’t hate its employees.

 

[MassWineGuy]

Interest rate is good: 2.99 percent

 

[IVE GOTTA PACKAGE 4U]

Interest rate is good: 2.99 percent

That's a really good interest rate.

You probably have to take 175,000 out of you retirement plan to pay it off.


Maybe take a little bit of money out of your plan this year just enough to keep you in the lowest tax bracket and do the same again in January.

 

[MyTripisCut]

One thing to consider is how much mortgage interest you’d be losing at tax time. Sometimes debt is good.

 

[MassWineGuy]

You mean pay it down some now, and again next year.

 

[Lates]

With the interest rate that low you be probably making more money with it invested. But I’d get with financial advisor and they could go over the different scenarios.

 

[IVE GOTTA PACKAGE 4U]

One thing to consider is how much mortgage interest you’d be losing at tax time. Sometimes debt is good.

It's a very low interest rate

But if he is considering taking out some money now is a good time because of the lower tax rates.
They current tax rates will sunset at the end of 2025

 

[MyTripisCut]

It's a very low interest rate

But if he is considering taking out some money now is a good time because of the lower tax rates.
They current tax rates will sunset at the end of 2025

You’ve been sleeping with Dave again.

 

[Just A UPS Guy]

One thing to consider is how much mortgage interest you’d be losing at tax time. Sometimes debt is good.

Hard to hit the threshold for itemization since they raised the standard deduction.

 

[IVE GOTTA PACKAGE 4U]

You’ve been sleeping with Dave again.

I'm just saying he could probably take out 30k and still have his balance grow.
.
There's no correct answer for this

Peace of mind is a good thing

 

[Up In Smoke]

Should we pay off our mortgage before retiring? My wife is retiring fully by August. I’ll keep working another couple of years or so, depending on how awful Express gets.

Payoff balance: $116,700
Monthly payment: $1,635 (increases periodically)

Current retirement funds: approx. $1-million, not including Social Security.

Are you a contractor? If so, how is your business structured? Are you a LLC, S Corp, C Corp, partnership with your wife or owner operator?

 

[MassWineGuy]

Not an independent contractor. Wage slave for FedEx. My wife made the real money.

 

[Jkloc420]

Sell it

 

[Jkloc420]

R u in a conventional mortgage or an adjustable rate mortgage

 

[Up In Smoke]

Not an independent contractor. Wage slave for FedEx. My wife made the real money.

In that case, hold your mortgage and continue to fund your retirement while your working. I would look into placing all your wealth into a trust to protect it from extended care costs as you age.

 

[DriverNerd]

With a rate below three I'd pay it off as you go. How much of your mortgage payment is actually for the mortgage? If it's not an adjustable rate mortgage and you say it keeps going up means you are paying your insurance and taxes with it. Those are payments you're still going to have to make. If you're far enough along you're also probably not paying that much in interest per month. I know it feels good not to have a big debt payment every month, but with low rates and the fact you will still be working I'd let your retirement money keep growing.

Disclaimer: I'm not a financial advisor.

 

[MassWineGuy]

Conventional mortgage. Most of the payment goes toward principal, then interest and escrow. I pay my own home insurance.

Payments increase each time the town makes major expenditures.

 

[DriverNerd]

Conventional mortgage. Most of the payment goes toward principal...

If that is true, there's no reason to pay it off early.