use 457 to pay off mortgage

I invest the monthly payment of 989+500 a month for 17 years and I end up with $796,898 minus a few thousand a year for taxes since I lose my mortgage interest deduction, say a good $50k over 17 years leaving me with $746,898 invested after 30 years. 1. In many cases, investing is the better option. Paying off a mortgage when you retire, even if you have to use retirement funds to do so, may sound very appealing. A mortgage is a long-term loan, used to pay for a home. How To Pay Off Your Mortgage In 5-7 Years WITHOUT making more money or changing your lifestyle! A reader nearing retirement wrote in to ask if he should dip into his IRA to pay off a mortgage. This card offers two miles for every dollar you spend, so in the end, that left us with $2,000 in flexible travel credit we could use to pay for hotels, cruises, airfare and other travel expenses. What to expect when discharging your mortgage. IRAs and 401ks are for retirement after all, and Uncle Sam does his best to … Pay Off Mortgage First Or Invest?Get life-changing financial advice anytime, anywhere. You can end up paying less. @Jason Wutzke Your mothers 457 plan may have a loan provision that allows borrowing from the balance accumulated in your account. They used a traditional 30-year mortgage to buy the property, and included the expected rental income in their income total used to qualify for the loan, he says. You might have good intentions and say to yourself that once the debts are paid off, you will have extra money with which to build up your retirement savings. The longer you carry a mortgage balance, the more interest you accrue. There are plenty of other ways to pay off your mortgage early. Be sure to have a plan in place in case you are fired or desire to leave employment. Reasons to Invest First . When you pay off your mortgage and meet the terms and conditions of your mortgage contract, the lender doesn’t automatically give up the rights to your property. This strategy uses a Home Equity Line of Credit (HELOC) to pay off your mortgage (either all at once or in chunks depending on your limit and mortgage amount.) That applies to people who are in their 50s or older. Some folks will be able to do this, but most of us will find another use for the money. It is possible (but unusual) that you can be confident of earning more from using your savings in some other way than paying off the mortgage. While using a student loan cash-out refinance to pay off your student loans may sound like a good deal, there are a variety of risks associated with it. Should you pay off your student loans using your 401(k) balance? If someone you care for is falling behind on their mortgage or if you simply want to give them a gift that will last a lifetime, it is possible to pay for their mortgage. If you’re nearing retirement and you still have quite a bit of your mortgage to pay, consider paying down your mortgage. We used my Barclays Arrival Plus World Elite Mastercard to pay our mortgage off. Use our free budgeting tool, EveryDollar, to see how extra mortgage payments fit into your budget. Financial theory recommends that if your after-tax return on investments is greater than your after-tax cost of debt then you should invest. If using a 457(b) for retirement savings, it should be the first account tapped to provide income for retirement due to the risk of loss. 4 risks to refinancing your mortgage to pay off student loans. That is not a wise financial move. Not paying your mortgage will ruin your credit and cost your house. Pay less in mortgage interest do n't use your 401 ( k ) balance much money it you! This strategy would therefore only work if you own two houses and you pay off your.! Liz: I ’ m 54 and plan on retiring at 55 with government. 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