my husband and I are in late 60’s with approximately $80K owed on mortgage. He is planning on working until it is paid off in three years.. There is a possibility that his company closing.. With the extra money that we have each month should we bank it or try to pay off the mortgage.. I know that there is an amount that needs to be put aside for emergencies so I”m wondering if that is the reason to save instead of pay off.

Terry Says:  Well, obviously you already know my answer.  BOTH!  This is the time to get out of debt and build up your savings — while you both can bring in some income.   But there are some other things you might want to consider given your circumstances.  First, if he loses his job at this point, there is very little likelihood that he will get another.  If you can pay off the mortgage in three years, fine.  I always advise people to pay off their mortgage before retiring; it’s a great plan.

But if you won’t be able to pay it off when/if he loses  his job, take a look at the rate you are paying.  If you  haven’t refinanced to a lower rate, the time to do it is now when he is still employed.  Retirees have an almost impossible task if they want to refi.  I don’t know how much savings you have, or how much retirement income.  I would never suggest stretching out your mortgage for another 10 years — unless you think you won’t be able to pay it off in three years if he loses his job.  Just something else to consider.

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