From Dow Jones & Company:

A couple in their 60s is considering whether they should use their savings and CDs to pay off their $306,000 mortgage with a 4.99% interest rate. Paying down the mortgage to remove private mortgage insurance (PMI) is an option, as it will save them on interest payments and increase home equity. However, it’s important to weigh other factors, such as having enough cash for emergencies and potential future expenses. Paying off the mortgage early may also incur prepayment penalties, and the couple should also consider higher CD rates and investment options for their cash. Ultimately, it’s a personal decision, and they should carefully assess their financial situation before making a choice.



Read more: We have $300K on our mortgage. Should we use the money in our CDs to pay it off?