You think you’re too old
Age is nothing but a number, right? Well, when it comes to refinancing, age can play an important role in your decision. If you’re retired or closing in on retirement, you may think a refinance isn’t worth it because of your age. But as with most mortgage decisions, it comes down to what is best for your own personal situation; there’s no one-answer-fits-all.
What you can do about it: Many older homeowners choose shorter-term loans when they decide to refinance. The shorter term allows them to pay off their loan by the time they retire or soon after. Or, if retirement savings are at a minimum, you may wish to refinance into a new 30-year term.
“If you intend to invest the extra savings for your retirement, this could be a good move, especially if you use the investment to pay off your mortgage in full at a later date,” says Joseph Adkins, CEO of Global Asset Management Group in Altamonte Springs, Fla. But, again, this decision really revolves around your savings and your goals for retirement.
For more information, read: Retire with your mortgage or refinance?
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