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Pay off home ?

By Terry Savage on October 29, 2019 | Housing / Real Estate

I’m 74 still working leaving soon! Owe 50k on house, have 224k in 401k, all in Safe Fund 25k savings money market. Receiving 25k in SS. Should I take 50k out of 401k to pay off home? No credit card debt. Thank you!

Terry Says

That’s an interesting question. You didn’t mention the interest rate on your mortgage! But while you are working, you might be better off refinancing it to the lowest rates — and then holding on to it. I didn’t say take out a new 30 year mortgage, but maybe a 10 year mortgage would leave you with an affordable payment — and still have cash for emergencies. And after you’re retired you can decide whether you really still want the responsibility of a house — heating, repairs, snow shoveling, etc! At that point, you could sell and use the cash either to rent, or to buy a smaller, simpler place to live.

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