Mortgage payoff
Terry, we have lived in our home for 19 years. We are in our 80’s. My question, our balance on our mortgage is $27,000 with 4 percent interest. Would it be better to pay off this debt. Right now we are on s.s. with some investments. I assume our home is valued at around $500k. I would appreciate any advise. Thank uou.
Terry Says
Well, if you are only paying 4% interest and you can earn 5% interest in the bank or on Treasury bills, it doesn’t seem to make sense to pay off the mortgage — even though it might give you a false sense of peace of mind.
Just make sure your investments are not risky. You might put some in U.S. Treasury bills, currently paying 4.5%.
Read this: https://www.terrysavage.com/t-bills-beat-cds/
That way you would have liquid savings in case the house needs repairs or some other emergency comes up.
