"JohnH" wrote in message
...
On Thu, 17 Sep 2009 06:07:37 -0700, "nom=de=plume"
wrote:

"BAR" wrote in message
om...
JohnH wrote:
Given - CD maturing. Amount sufficient to pay off mortgage. Mortgage
rate is 5.25%. New CD rates - 3% for five years, 4% for seven years.

What would you do?

Stock market exposure is high enough.

Will be at the golf course pondering the situation. Back later.

No, I don't want to buy a red barn.

Do you have taxable income? Do you itemize? The 5.25% mortgage is not
really 5.25%, it could be as low as 3.5% when taxes are taken into
account.

It is easier to cash in a CD for unexpected expenses than it is to get a
mortgage on a house to raise the money that your CD currently has.

Just some thoughts.


It's hard to make a judgement without knowing the full story. I'd suggest
a
CPA tax accountant. You could also talk to a Fidelity consultant, although
they are of limited value when making actual recommendations.

I wouldn't rush to pay off an affordable mortgage, but you could make an
extra payment to pay it off faster.

Well, I don't ask the 'financial manager' types, 'cause they'd tell me
to invest the CD proceeds in stocks, or whatever.

The CPA idea is good, but many of the folks here are much better.
--

John H


Anonymously on Usenet? Well, you pays your money, you makes your choice.

--
Nom=de=Plume