Can I refinance?

[Anonymous]

Anonymous wrote:As a comparison, I am 50, we have at least $2.5 million saved for retirement, and refied both mortgages to 15 years so that we have them fully paid off a few years before age 65. Our total mortgages are $600k against home value of about $2 million (so value probably not too different from yours). And I am nervous about having enough for retirement and am ramping up our savings substantially.

If you feel insecure with the savings you have achieved you have a problem and it is not a financial one but something that runs a lot deeper. Is there any amount of savings that would cause you to feel comfortable? Do you have any idea of what the vast majority of Americans have in the way of savings when they retire? It is a lot less than you do and most live perfectly normal and comfortable lives.

[Anonymous]

I guess it just strikes many of us as unusual that you would feel comfortable with over $1 million in debt when your income is $105K plus c$60K from investments. This debt burden would be high for someone starting their career, let alone someone in retirement.

I accept that with current interest rates that is "affordable", but you could also afford to borrow all the equity in your winter condo and stick that in the stock market. Doesn't mean it is a good idea.

[Anonymous]

You're doing great, OP! I would call or email a mortgage broker and just ask if you can refinance. Brian Fitzgerald at Presidential Mortgage and Paul Hornyak at Eagle Bank are both great.

[Anonymous]

Wow. The craziest thing in this whole thread is that the OP says if she were to downsize, she'd just spend the savings on gifts and donations for her children and grandchildren.

This teaching them to live beyond their means.

OP, unless you root for one of you to die soon, you ARE going to need long term care. That nest egg you are burning down completely unnecessarily is the difference between a horrible hovel and a decent home, nursing home wise. It's inexplicable to me that you'd throw away all this money on debt service for a house thats likely way bigger than you need.

[Anonymous]

Anonymous wrote:I guess it just strikes many of us as unusual that you would feel comfortable with over $1 million in debt when your income is $105K plus c$60K from investments. This debt burden would be high for someone starting their career, let alone someone in retirement.

OP here:

Why would I be uncomfortable with the debt I have as long as I have the ability to service it without straining my financial resources? I am not sure age enters into it except to the extent that one may need long term care down the line and that would need to be funded. I think that is a legitimate point ...... and that contingency needs to be taken into account in any older person's planning though I am not sure that keeping a substantial nest egg to deal with that contingency is the optimal or only solution.

Anonymous wrote:Wow. The craziest thing in this whole thread is that the OP says if she were to downsize, she'd just spend the savings on gifts and donations for her children and grandchildren.

This teaching them to live beyond their means.

I think you missed the point. I was not arguing for giving my children money - they are all more than self-sufficient. The point I was trying to make was that we live a very comfortable lifestyle and there is nothing that I can think of that we would want to spend our money on to improve on that life-style. I have owned luxury cars in days gone by ........ still own one. But, and perhaps it is age that causes a change in one's thinking, today I view a car as basically transportation. The same holds true for other vestiges of "success".

[Anonymous]

Anonymous wrote:I would downsize the house, but for mostly non-financial reasons. It's just easier to downsize in your sixties than it is to do it later in life. My mom is in her mid-seventies and just moved into senior housing. She's in great shape - very active, healthy as a horse, travels all the time - and even then, the transition was really hard on her. Sooner or later we're also going to have to move her to a place closer to us and at that point it will be too late for her to establish roots in her new community. That's when she'll need those kinds of connections the most too. So, in your shoes my thinking would be focused on the question of aging and whether or not you can age where you are now. Assuming you don't want the care and upkeep of a large, expensive home as you age, I would be looking for a home that could accommodate a much older, much less healthy you in a location where you would have easy access to services and family.

Valid points! The main reason we don't downsize now is that we are not sure whether we want to continue living in this area of the country. We are looking at other locations to live but it is a question of balancing the various considerations that come into play when one makes such a decision at our age.

[Anonymous]

You are the living embodyment of why they need to abolish tax relief on mortgage interest.

[Anonymous]

Anonymous wrote:You are the living embodyment of why they need to abolish tax relief on mortgage interest.

LOL!

If mortgage interest were not deductible, I'd sell my abode in a heart-beat! But I seriously doubt that it would be abolished ....... at most, I can see it being limited to perhaps mortgages of a million dollars.

[Anonymous]

Anonymous wrote:You're doing great, OP! I would call or email a mortgage broker and just ask if you can refinance. Brian Fitzgerald at Presidential Mortgage and Paul Hornyak at Eagle Bank are both great.

Thanks for the suggestions .......... and the vote of confidence!

[Anonymous]

Anonymous wrote:1.2 million is not a lot to make last for another 30 years for 2 people. Especially if one or both people will need expensive long term care. I really, really urge you to consider downsizing now.

+1, and you don't have the money to give to your kids.

[Anonymous]

Anonymous wrote:1.2 million is not a lot to make last for another 30 years for 2 people. Especially if one or both people will need expensive long term care. I really, really urge you to consider downsizing now.

We also have income of $105K annually (SS and annuity) which should continue as long as we are alive. This is over and above the savings you mentioned.

But we will downsize ..... it is just a matter of timing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You're doing great, OP! I would call or email a mortgage broker and just ask if you can refinance. Brian Fitzgerald at Presidential Mortgage and Paul Hornyak at Eagle Bank are both great.

Thanks for the suggestions .......... and the vote of confidence!

OP: Call here. We've refinanced and purchased through her 3x, and had great luck each time.

Christine Rutledge
Senior Loan Officer
Cell- 708-341-9896
Direct- 312-462-1663
Fax- 800-918-0684
NMLS # 271901

[Anonymous]

OP, I think you're doing just fine too. You have sufficient income and you're comfortable.

Yes, you can refinance. I would suggest getting a 15y (or 10yr) mortgage only. How many years do you have left on your first mortgage?

[Anonymous]

Anonymous wrote:OP, I think you're doing just fine too. You have sufficient income and you're comfortable.

Yes, you can refinance. I would suggest getting a 15y (or 10yr) mortgage only. How many years do you have left on your first mortgage?

This is all assuming you decide to stay put here, of course.

[Anonymous]

I would do interest only, and also cash out. Invest the money.