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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you want to stay in your house at retirement  and you cannot afford to pay the current mortgage amount once you retire, it seems like recasting the 200 is a good idea to lower the payment right?  I’m not sure why people aren’t seeing it that way. Welcome someone clarifying.[/quote]

I guess if they can’t afford bit could afford the new payment that would make sense, but it won’t shorten the loan period. They’d probably be better off putting it towards principal and being done with the loan sooner.

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They could always recast and continue paying extra each month. [/quote]

I am the recast poster.  In their situation I would not do a lump sum.  They don't have enough college or regular savings as they over spent on their house.[/quote]

Their mortgage is roughly twice their HHI. I don’t think that is overspending in this area. [/quote]

Given they have little savings at that income it’s very high.  [/quote]

Go fly a kite. They have at least 1.4 million in savings. Sheesh[/quote]

DP: Sure, that's a large amount of money but they have a household income of 470k and they are in their mid 40s with nearly 30 years left on a large mortgage and 2 young kids.  It's not that high of savings for their situation, esp. since some of it is earmarked for college and they will likely not qualify for financial aid and will have to save more. They are not in dire straits or anything, but they do seem to need to shore things up a bit.  For comparison, we're around their age with less than half their income, have already paid for one kid's college and have 1 more to go and our net worth is 2.25 m and that's considered "on track" by our financial planner for our income and planned retirement at 67.[/quote]

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