I am a retired officer and currently have seven years left on a 15-year/4.875 percent mortgage amounting to about $200,000 on our residence valued at about $450,000. I’m considering refinancing the mortgage. What do you think? – Jon


Hey, we’re happy for you! It sounds like your hard work, commitment and attention to detail has resulted in a great retirement scenario! We don’t think refinancing is a bad idea…especially given that current rates on a 15-year mortgage are more than 1 percent lower than your current rate. With some reverse calculations our guess is that a 15-year refinance would cut your monthly principal and interest payment in half, requiring around $1,400/month less each month. This could certainly add some wiggle room to your retirement budget – money that could be used for a lot of different purposes. On the other hand, what really gets us excited is the thought of being mortgage free in a few short years, especially during retirement! Since your current mortgage payment fits into your budget and you’re just a few years away from owning your home free and clear that’s what we would focus on. In the end, what you have are a couple of good options and either way you go, you’re going to land squarely on your feet. Inflation should mean increased real estate values, which should also benefit you. Well done! Sounds like you’re in great shape.