Elderly couple debates paying off $100,000 mortgage
Should money be used for emergency or low-rate loan?
DEAR BOB: We have learned so much about real estate over many years from your articles. But now we need your advice. I am 72. My wife is 65. We have $160,000 in three-month T-bills. Should we use that money to pay off our approximately $100,000 mortgage at 5.7 percent interest with 28 years remaining at a $560 monthly payment? –Vinh H.
DEAR VINH: You have an excellent fixed mortgage interest rate. The only reason to pay it off early, presuming there is no prepayment penalty, is because you have more than enough cash than you will ever need.