should I prepay or not

Guest 0.10 Dollars($)

I have a 30 year fixed rate mortgage with the rate a little above 5. I don't have any PMI. Now I am $300 prepayments (sometimes more) every month.

I don't have any other debts. Should I continue with it or should I keep the extra payments in bank as I might be earning more with the bank than saving the cost on my mortgage interest? I am almost at my retirement age.

Guest 0.10 Dollars($)

Better to pay it off and get relaxed. You can go for a reverse mortgage even after you retire with no debts left with you. That is even a tax free income. Wink

Samantha · Posted: Tue Mar 07, 2006 2:32 pm Post subject:

Hi Rosalyn,

This is entirely a decision of your own. If you ask my personal opinion, I would have preferred making prepayments as you are doing.

I feel your home should be debt free as soon as possible. Earning money, while your home is kept as security is not a good option.

So, it would be better to continue paying off as you are already doing. This is even more required as you are on the verge of retirement.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

Hi Rosalyn,

Some people do think that instead of building equity quickly, they should have earned from somewhere else whereas others give preference to their home's security.

Sometimes the decision may be tough but you need to decide anyway on what you want exactly.

Ken

Caron · Posted: Tue Mar 07, 2006 9:14 pm Post subject: RE:

Hi Rosalyn,

It's good that you are prepaying your mortgage, after all you need to keep your home free. No doubt, you may be earning more with the bank, but it's always a good decision to get rid off your debts before retirement.

Thanks,

Caron.

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