Hi, I'm 55, retired with a $98,000 a year government pension, my wife is 52 and is a stay at home mom.
We have a home worth $550,000 with a mortgage of $188,000 with a payment of $1,207 a month for 20 yrs left. A second of $80,000 with a payment of $944 a month with 9 years left. A third of $40,000 with a payment of $659 a month with 6 years left. Total payments of $2,810. Taxes and insurance are not included.
I want to refi $308,000 to a 30 year with a rate of 3.625% for a payment of $1,408 a month. This will free up appox. $1,402 a month for $100,944 savings the first six years. And $26,316 for the next 3 years.
We have approx $45,000 in pension loan with 42 months left and $44,000 of various credit card debt and college loans for our kids.
My wife seems to think that since we only have 6 years left on our $40,000 loan and 9 years left on our $80,000 we're "paying ourselves" because the interest is lower than the principal.
We would have about $17,000 a year extra and that would have us debt free except the mortgage in 6 or much less years with the debt we have already except for the new mortgage and then another extra $9,000 a year for the next three years.
We have 4 children, a 24, 22, 20 and a 14 year old. They should be out of the house by then and I don't see us in this home a lot longer after the 9 years. Too big for two people.
I say it will take us 18 years using her plan to get to the point where we will be in 9 years using mine. We have no college saving plan for the 14 year old Thank you