Newspaper article The Topeka Capital-Journal

Paying off Mortgage Puts Your Money Ahead

Newspaper article The Topeka Capital-Journal

Paying off Mortgage Puts Your Money Ahead

Article excerpt

Dear Bruce: Currently, I have $35,000 remaining on my loan at 4 percent interest. I am in year six of a 30-year mortgage. I have the money in a money market account that I use for emergencies and vacations that makes no interest to speak of. Should I simply pay off the mortgage with these funds?

I also have $150,000 in savings bonds with 4 percent accrued interest, but would have to pay the tax on 50 percent of the interest if I cash them in. I plan on retiring in three years, and I am 57 years old. I presently prepay the mortgage and it would be paid off in 3 1/2 years that way. The mortgage interest doesn't help me with my taxes at all. So, pay off or continue to slowly pay monthly? I am married, and my husband will continue to work for five more years. -- R.V.

Dear R.V.: First of all, why in the world would you keep money in a money market account, even for emergencies? …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.