This week, I’m talking about the amazingly low mortgage rates out there right now, and helping you answer an important question that you need to be asking yourself: should I refi now? 

Today I’m talking about why you should refinance your mortgage before you retire, and not just now because rates are low, but why it makes so much sense especially in the 5-10 years leading up to retirement. 

The biggest reason you should refi before you retire is if you can lower your payment. Housing costs and mortgage payments make up a pretty big portion of monthly expenses for most Americans, so ideally you would eliminate your mortgage before you retire, so you don’t have a house payment at all. But if that’s not in the cards for you, lowering your payment reduces your living costs in retirement, and helps you make your money last. 

The other reason to refi before you retire is to take advantage of low rates that are fixed. The fact that you could lock in a 15 or 30-year mortgage at 3-3.5%, where those payments won’t go up during your retirement is a compelling reason to refinance. Part of the challenge of living on limited resources and a set dollar amount of assets and income in retirement is that the cost of everything is always going up. Groceries, gas, eating out, travel, etc. But if you have a house payment that won’t change in retirement and is lower than what your paying now because you refi’d, that’s a nice fixed bill that won’t go up when everything else is. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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