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[quote=Anonymous]We recently inherited about 500K. We can either pay off our mortgage (20 years left, 2.8 rate) or fully fund a much-needed renovation. WWYD?

If we pay off the mortgage, we would be able to save another $40K toward the renovation while we go through the planning stage. We'd still probably need a $400K HELOC but could pay it off in less than 8 years. (We have priced out the reno at $350 but I know things always crop up, plus we'd need to live somewhere else for a few months at least.)

If we pay for the renovation, obviously nothing else in our financial lives changes - we'd just continue to have the mortgage for the next 2 decades.

We considered just moving to a newer house but we really like our neighborhood and all the houses we could afford still need substantial work, and we'd need the inheritance to keep the mortgage reasonable with today's rates.

We are well-funded on retirement and college savings. No other debt. This should just be a simple math question but the idea of paying off the mortgage and being completely debt-free sooner is very attractive. [/quote]

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