If you were in this situation, what would you do?
47 yoa - moved during the start of the last housing bubble so locked in 30 yr fixed 4.5 with 0.25% discount… essentially 4.25%. Pay Off at 73 years of age. Want to retire around 55.
Parents want to give us $400,000 (200 each) to do with what we want. I kidda don’t want to pay a mortgage until I’m 77 years old when I’m retiring at 55. The 400,000 would be half of our current mortgage.
I already have a 403b, and 457 that i was funding with hopes to use its tax free growth to pay off some mortgage when we retire. Maxing Roth IRA for the last 15 years as well.
Would you:
1. Make one big lump sum payment on house now and have the house paid off in 11 years (in time for retirement)
2. Buy government 10 year at 4.6%
3. Invest in something with dividend
4. Take 2 or 3 and use the divided or extra money paid to pay down mortgage as you go (should help pay 3 months per year at 4.5%)
5. Other ideas?