Mortgage payoff vs car loans payoff
I have $95,00 in car loans and owe $190,000 on home. Loan on own is 16 years left. I am retired at age 64. Home is worth $420,000. I am looking at the option of paying off my home in the next 10 years with current monthly savings or should I payoff both cars with a refinance of my home to save $1800 per month on both car notes?
My refinance cost would only be $300 to $400 more per month than my existing home payment which seems to be okay if I am saving $1800 / month in car payments. What is the best option? Continue with mortgage payments in retirement for next 20 to 30 years with no car payments or have house paid off in ten years with current monthly savings with current car payments? Not sure if I should refinance home in retirement to payoff both cars at this time? My interest rate on home is 4.9% . Pension is $12, 000 per month.
Terry Says
I’m not sure if this is a joke? What are you doing with TWO car loans totaling $95,000 in retirement???
There are only two sensible answers if this situation is true:
1. SELL one of the cars and use the equity to pay off the other car loan.
2. UNRETIRE — and keep working until your car loans are repaid!
