Nickname: Tripleplay

Review: I am a senior. I refinanced with a 30 mortgage last year year at 5.25%. Net of taxes, my cost is 4% vs. a 10 year treasury bond yielding 4.6%. Hence, I've covered my cost and any increase in the value of the house is gravy.

Date reviewed: Oct 3, 2006 3:55 PM

Nickname: JB

Review: In the "plan ahead stage" if your mortgage allows, without penalty, paying down the principal each month represents a sizable savings in total interest over the life of the loan and shortens the time to pay off the mortagage. Get an ammortization table to track your progress. Can result in alot of peace of mind upon retirement.

Date reviewed: Oct 3, 2006 12:43 AM

Nickname: Bev

Review: How many seniors with a mortgage would not consider the payment when calculating their retirement needs? Paying it off before retiring is wise because paying only the real estate taxes and insurance is cheaper per month than a mortgage and the cost of additional income taxes (no interest deduction) is less than the interest payment. Now additional funds can be invested. Historic returns are history. Seniors who followed financial advice and got caught in the downturn of the market are still trying to recover. Some, including a few of my friends, went back to work. If the house is paid off, the amount of money needed per month will be much less. Living debt free is living without worries. In my opinion, reverse mortgages are a rip-off of seniors and their families. If a steady income is required, sell the house, get a smaller home and invest the rest in an annuity. This is the plan for my life.

Date reviewed: Oct 2, 2006 11:54 PM

Nickname: RON

Review: After renting in zip 20814 for 3 years in a 300 unit apartment for $2,000 including utilities, parking, door man security, pool- it's a nobrainer and will do so in California. Monterey county in '07, especially with California property tax/insurance plus principle and interest. Income from munis is the way to go! Ron

Date reviewed: Oct 2, 2006 11:32 PM

Nickname: Jim

Review: Recommending the "average" person not pay off a mortgage is negligent. The "average" person doesn't have the money to put into other investments. It is a strategy for the rich. Unfortunately, this important distinction is not communicated in general discussions about whether to pay off the mortgage. People should strive to pay off their mortgages so that they can then start to properly save for retirement.

Date reviewed: Oct 2, 2006 7:30 PM

Nickname: Joe

Review: While holding mortgage debt in retirement is not in itself a terrible thing, people should be aware that even though, on average, the expected returns on their portfolio may exceed the mortgage interest rate. They are taking on significant risk that investment performance may not match their fixed income requirements very well.

Date reviewed: Oct 2, 2006 5:54 PM