Been thinking a lot lately about how to boost my retirement savings without feeling too pinched right now. I'm in my early 50s, still got some working years ahead, but you know, retirement ain't exactly far off anymore. So I've been looking at my house—got decent equity built up, thankfully—and I'm wondering if it's smarter to do a cash-out refinance or maybe just refinance to a shorter loan term to pay it off quicker.
With the cash-out option, I could invest that money right into my retirement accounts or maybe some other investments. Seems tempting, especially if the market stays decent. But then again, there's always that nagging worry about taking on more debt, even if it's technically just rearranging what I already owe. Plus, interest rates aren't exactly rock-bottom anymore, so that's another thing to consider.
On the other hand, refinancing to a shorter term (say, from 30 years down to 15) would mean higher monthly payments, but I'd be mortgage-free sooner. That'd give me peace of mind knowing my home is fully mine by the time I'm retired. But it also means less cash available now to invest elsewhere or handle unexpected expenses. And you know how life loves to throw curveballs...
Honestly, I'm stuck between these two choices. Both seem to have their upsides and downsides. Curious what route other folks here have taken—or would take—in a similar situation. Would you rather free up equity to invest now or buckle down and get rid of the mortgage entirely before retirement hits?
"there's always that nagging worry about taking on more debt, even if it's technically just rearranging what I already owe."
Honestly, I'd lean toward shortening the loan. Seen plenty of folks tempted by cash-outs, but markets can dip unexpectedly... peace of mind counts for a lot as retirement approaches.
