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Can you please give me your suggestion for a question I have? I am 51 years old. We currently have a mortgage with a balance of 120k and 7 years left on the mortgage at 5.75% interest. I currently have 10k in a non matched 401k . I would like to know should I consider doubling mortgage payments and have the mortgage paid off in 3 and a half years or should I start contributing more to my 401k? I appreciate your comments and suggestions.
I would pay off mortgage as soon as possible. Every dollar paid off to mortgage is that much less interest paid. No guarantee the dollars paid into 401K will make money. Once mortgage is paid off, then hit the 401K hard.
Having just paid off mortgage myself at age 53, it is a great feeling knowing you own your home
Jasper Hobbs
Last edited by jasperhobbs; 10-05-2014 at 06:39 PM..
that is a myth about interest on a mortgage. if you look at the amortization table the rate stays the same through the life of the loan. they are not front end loaded as folks believe.
Can you please give me your suggestion for a question I have? I am 51 years old. We currently have a mortgage with a balance of 120k and 7 years left on the mortgage at 5.75% interest. I currently have 10k in a non matched 401k . I would like to know should I consider doubling mortgage payments and have the mortgage paid off in 3 and a half years or should I start contributing more to my 401k? I appreciate your comments and suggestions.
Paying off your house might be a better move...you can pay a little more and pay it off in 5 or 6 years. The Housing maket is moving forward but slowly and surely. Im sure you want to be mortgage free by the time you're 60 so you can enjoy your retirement days.
Can you please give me your suggestion for a question I have? I am 51 years old. We currently have a mortgage with a balance of 120k and 7 years left on the mortgage at 5.75% interest. I currently have 10k in a non matched 401k . I would like to know should I consider doubling mortgage payments and have the mortgage paid off in 3 and a half years or should I start contributing more to my 401k? I appreciate your comments and suggestions.
If it was me - If you can afford to double the mortgage payment, I'd do both.
Take the extra money you have each month and send half to the mortgage and half to some kind of retirement account, whether it be your 401k or a private one.
Can you please give me your suggestion for a question I have? I am 51 years old. We currently have a mortgage with a balance of 120k and 7 years left on the mortgage at 5.75% interest. I currently have 10k in a non matched 401k . I would like to know should I consider doubling mortgage payments and have the mortgage paid off in 3 and a half years or should I start contributing more to my 401k? I appreciate your comments and suggestions.
Unless you plan to retire before age 58, your mortgage will be paid in full before you retire, without doing a thing (well, other than making your monthly payment).
Increase your 401k contributions. Also, spend some time to determine if you are investing those dollars as well as you can.
Do you have a pension, or other source of income you expect to receive in retirement? If not, it is strictly SS benefits and withdrawals from your own savings. You could be contributing to your 401k now and saving taxes. Later, you will withdraw with no taxes (assuming no pension, etc.). You don't have a lot of time left to get prepared, so use every advantage available to you.
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