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Guest
Guest
There is no "financial" section of this board so I posted this in the Retirement section which seem close.
I don't give financial advice to "real" people... just to relatives who won't sue me (!!!)... but I like to get advice so that I can at least be knowledgable.
When do you pay off the house?
My cousin's situation...
For those of you with a financial advisor background, what do you say? Should this couple pay off the mortgage? (They tell me they have no plans to move to a different house until the RE market "comes back" (if ever!)) Would paying the mortgage be a good use of almost $168K?
I don't give financial advice to "real" people... just to relatives who won't sue me (!!!)... but I like to get advice so that I can at least be knowledgable.
When do you pay off the house?
My cousin's situation...
- Couple, no children both 64 years old, good health.
- Wife retired and took SS.
- Husband semi-retired... self-employed contract programmer. Did not take SS yet.
- Liquid assets (excluding real estate) is almost $900K
- Market value of house: $450K-$500K
- Mortgage: $167,200 for 21 years at 6.3%. Payment almost $1200/mo.
- Other debt: zero
- Yearly income (gross) from work, SS and fixed investments: $100K
- Living expenses (including mortgage): $60,000 yr.
For those of you with a financial advisor background, what do you say? Should this couple pay off the mortgage? (They tell me they have no plans to move to a different house until the RE market "comes back" (if ever!)) Would paying the mortgage be a good use of almost $168K?