‘Does it make sense to have all this access to cash, but owe so much on our mortgage?’

  • Consider paying down enough of the mortgage to remove the mortgage insurance fee
  • Evaluate your cash buffer and budget for emergencies
  • Plan for unforeseen expenses and potential income dips in retirement
  • Check for prepayment penalties and consider investing some cash for higher returns
  • Shop around for higher CD rates

A couple in their 60s with a $300,000 mortgage balance and $90,000 in CDs and $100,000 in savings are considering whether to use their CDs to pay off their mortgage. Here are some key points to consider: – Pay down enough of the mortgage to remove the mortgage insurance fee – Evaluate your cash buffer and budget for emergencies – Plan for unforeseen expenses and potential income dips in retirement – Check for prepayment penalties and consider investing some cash for higher returns – Shop around for higher CD rates Ultimately, the decision is personal and depends on individual circumstances. It may make sense to keep the money invested in CDs and pay down enough of the mortgage to remove the insurance fee.

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Factuality Level: 7
Justification: The article provides some relevant information and advice on whether to pay off a mortgage or continue with CDs. It includes considerations such as removing mortgage insurance, budgeting for emergencies, and potential costs in retirement. However, it lacks in-depth analysis and specific financial calculations, and it does not provide a clear recommendation based on the individual’s financial situation.

Noise Level: 3
Justification: The article contains some irrelevant information, such as the mention of text-to-speech technology and the advertisement. However, the majority of the article provides relevant information and advice on whether to pay off the mortgage or continue with the CDs. The article offers considerations for both options and provides insights from a certified financial planner. Overall, the noise level is relatively low.

Financial Relevance: Yes
Financial Markets Impacted: No

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses a personal financial situation and does not pertain to any extreme events or financial market impacts.

Reported publicly: www.marketwatch.com