celia wrote:When you refinanced, I hope you didn't start over with a 30-year loan. If you did, how old will you be when it is paid off? Will you still be working at that age or have enough income to pay the mortgages? Many people feel more secure going into retirement knowing that this big expense is paid off.
Whenever you refinance (or even take out the original loan), consider how old you will be when the loan ends, then consider a shorter term. By paying down part of it now, that will shorten the term, but the difference in remaining years wouldn't be as much as if you had a higher interest rate. Of course, you also need to hold onto liquid assets for emergencies.
The easy way to get rid of a mortgage at retirement is to sell your house. That's what I did (well it took two months; I retired in June and the house wasn't sold until August).
But then I blew everything and bought a new house with a new mortgage to celebrate going on medicare. I used a 15 year mortgage. Is 80 too old to pay off a mortgage?
P.S. but I got mine at 3%, not 4%.