By Paul Morrone CFP®, CPA/PFS, MSA
Paying of the mortgage is one financial goal that many strive to achieve prior to retirement. Over a lifetime, it’s not uncommon for people to move multiple times, refinance their debt or use their home equity to fund large expenditures, including home renovation or college tuition. With lenders eagerly trying to earn your business in a very competitive lending environment, it may be difficult to determine the best way to pay off your debt the quickest. Before getting seduced by a quick refi or debt consolidation plan, run the numbers and weigh the current and future costs of all scenarios before entering into a new loan agreement. While there is no one-size-fits-all approach, careful attention to detail can have a huge impact on future cash flows, interest costs and your resulting net worth. I found this example to be eye opening as the results were not what I expected.