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[quote=Anonymous]Here is our situation:

We own a house that is worth between approximately $1.6 million  and have a first mortgage of $646K at 3.75% (5/1 through Penfed), a HEL of $125K (5.9% fixed) and a HELOC of $250K (varies with prime). The HEL was taken to buy a condo for use during winter and the HELOC was primarily to fund college expenditure for the kids as well as some home improvements.

All of this debt was taken several years ago when our income was substantially higher than it is today. We have since then retired. Our current income between SS and annuity/pension is about $105K annually. Our mortgage and property tax payments are about $6500 monthly. We have no other debts ....... credit card, auto etc.

We have about $1.2 million in savings of which two-thirds are in taxable retirement funds. We draw about $3500 from savings each month to meet our obligations and maintain our lifestyle. We also have excellent healthcare coverage and are both in our late sixties.

We both have excellent credit with FICO scores in the high 700s'. I would like to take advantage of the current low interest rates and lock in a rate based on financing the entire debt owing on the house at this time - the debt relating to the house is currently just over $1 million. However, at the present time based on our income we would not qualify for a mortgage of this amount.

Can anyone suggest a creative solution to finance the debt that we have and take advantage of the current low rates - or are we pretty much locked into the current rates? We have considered scaling down though quite honesty if we do so it would be because we could be comfortable with less house. Financially, between our current retirement income and the limited draw-down of capital, we can likely continue in our present house provided rates don't spike up resulting in a steep increase in our payments.
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