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I'm 60 years old and when I downsized 2.5 years ...

I'm 60 years old and when I downsized 2.5 years ago I could pay cash for a house. I am still working so my financial advisor and I agreed I would pay half down and put the rest into my IRA. I had $800K in my portfolio, but since that nice market dip it's down to $600K. I'm fairly sure I'm going to retire in 2010. My question: I owe $132K on my house 15 yr./5.75% interest - I'm thinking to stay liquid I should try to refinance @4.75% - 30 yr.(FICO 802) and if the market is better when I trun 65 + then I can pay it off or have the option to continue to make the payments. Your Comments?


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Open the pod bay doors HAL

Just on general principal, I'm opposed to refinancing unless it's a reduction of 2% or more. Refinancing your 132K loan, regardless of term, from 5.75 to 4.75, saves you 69.00 per month. If you pay (for example) 1,260 in refinance charges, it will take you 18 months to recoup this in reduced interest payments.

My opinion, unless you find it absolutely necessary to do so, retain your current loan and the 15 year payoff. 
Posted 2009-07-29T15:04:35Z
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Instant Person-Just add coffee.

My opinion is that I would pay it off now, since I hate being in any debt.  If you aren't making a higher interest rate on your savings as what you are paying on your mortgage, you are losing money.  I would pay it off and continue making the amount of the mortgage payment into the bank.   Only what I woud do, you might look at it differently.

 
Posted 2009-07-29T17:51:32Z
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I also don't have any debt other than the house so that we have in common.  I am fortunate enough to have options and thank you for your response.  It would be great if I could get my Financial Advisor and CPA in the same room!!
Posted 2009-07-29T19:17:47Z
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