Question:

I am 56 and live in Florida – should I pay off mortgage early or invest?

Answer:

Well, this is a common question: Should you pay off mortgage early or invest? You are close to retirement and may have savings that you want to make work for you.

How to decide - paying off home early or investing when close to retirement?

Largely, it depends on what kind of other assets you have, and how comfortable you are with investments. The safe path is to pay off your mortgage loan. To take the other route, you should go to your financial advisor and talk to them. If you are managing your assets on your own, you wouldn't be asking this question so I'm guessing you are not.

 There are several general schemes - pros and cons of paying off mortgage early, already discussed in MortgageQnA. However, for specific circumstances no general plan applies. This is a decision that has to be taken after your financial situation is examined:

  • your and your spouse's income;
  • how many descendants do you support;
  • do you have other debt and how much is it;
  • how late you are in your mortgage;
  • do you have investments and what is their rate of return;
  • do you have a medical plan and life insurance, etc.

Anything has to be taken in consideration before you make this decision and it is recommended to take financial planning advice from a professional.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage