Pay off mortgage with savings or HECM?

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Q: "I will retire shortly at 65 and still owe $67,000 at 6 percent on my mortgage, which I have not been able to refinance because I can't document enough income ... the mortgage still has 10 years to go, and the payment is $744. My house is worth $250,000 and I have savings of $300,000, which earn about 2 percent taxable income. Should I pay off the mortgage, let things ride, or is there another option?" A: You actually have three options: 1. Let things ride. 2. Pay off the balance out of savings. 3. Pay off the balance with a HECM reverse mortgage. (HECM stands for home equity conversion mortgage.) And you might have a fourth option at some point, as I'll indicate below. Option 2, liquidating $67,000 of assets to pay off the mortgage balance, is clearly better than option 1 because the mortgage is costing you substantially more than you are earning on your savings. If you keep the mortgage in force and pay the $744 from your savings, in 10 years at 2 percent yo...