Homeowners with extra cash cautioned about paying off mortgage

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: My husband and I owe about $57,000 on our home mortgage at 6.75 percent interest. We have that amount in a money market account, which only earns around 4 percent interest. I think we should take that money to pay off our home loan and never have to worry about mortgage payments again. I am 58 and my husband is 56. He took an early retirement buy-out from his employer, but I still work as a legal secretary because I enjoy getting out of the house each day. Do you think we should pay off our mortgage now? --Marilyn H. DEAR MARILYN: If paying off your mortgage will deplete your liquid reserves, I suggest you do not rush to pay off your home loan. However, if you have lots of idle cash sitting around the house, and you are 100 percent certain you will never need the $57,000 again, go ahead and prepay your mortgage. Purchase Bob Bruss reports online. Although that 6.75 percent interest rate might seem high, it really isn't when you consider its after-tax cost. Presuming you itemi...