Mortgage & Car loan
I am 77 my wife is 75, we have a Mortgage of $70 k at 6.49% approx $700.00 per month House is worth $700k,& a car payment of $391.00 for 3 more years. & a car lease for $441.00 a Month , the Car Lease ends at the end of Feb. 2027.Along with stocks, Pension, & S.S. we have $425K in C.Ds which we ladder every month. Is it advisable to pay off those two debts , & we like the leased car , is it better to buy it or turn it in to a new one? Our health is good & we have 2 grandkids in which we contribute $2k to each one in a 529 Act. Thanks!
Terry Says
Whew, you gave me a lot of information — and it is still not enough for me to give you a reliable answer. I honestly think you could benefit from a session with a fee-only, FIDUCIARY planner. Click on this link and watch the video to see how to find one you can trust.
There are larger questions you should examine. For example, how long do you play to stay in your home, and how long until the mortgage is paid off. And will your income and savings allow you to stay there and maintain the house, and pay increasing property taxes.
And do you still need two cars? There is likely a penalty for turning the leased car in before the end of the lease, but Feb 2027 is only 6 months away. The real question is whether you can get by with just one car at this stage of your life. Not getting another would free up a lot of money every month.
Oh, and by the way, do you have an up-to-date estate plan, and healthcare powers of attorney — etc etc! These are all questions a financial planner would want answered before giving you advice.
