Question by confused: Home refinancing equity vs mortgage?
Have an equity on the house (both husband and I are in our 60’s). Now that mortgage rates are so low would it be better to refinance at a fixed rate or keep my variable equity and just put extra money towards the principal. Would love to get out of this financial problem as quickly as possible (before retirement)
Answer by golferwhoworks
I would get the rate fixed now if I were you
I ama a mortgage banker in TN
Give your answer to this question below!
Welcome to that grand ole age, I too am in that age group. What ever you do, don’t forget to apply for medicare in the year you reach 65, for some reason the people at the social security office get pissed if you don’t. Enrollment is from Jan-Mar of each year so if you turn 65 in Jun you have to apply in Jan-Mar. I felt like a little child that was taken to the wood shed.
If you plan to retire soon and live on a fixed income it is time to start making a budget to accommodate this new and different life style.
If you are contemplating your retirement 2 years is the right time to start, so start with the mortgage to place it in a fixed rate mortgage. It is difficult to refinance a mortgage on a fixed income.
Keep your extra money in a liquid interest bearing account for those things that you were accustomed to paying for out of your pay check.
I hope this has been of some use to you, good luck.