1. Refinance Your Mortgage
If you need extra cash to pay off debt like credit cards or student loans, refinancing your mortgage might be the answer. A refinance replaces your existing mortgage with a new mortgage, and in most cases, your new mortgage has a lower mortgage rate. This can reduce your monthly payment and free up cash.
Let’s say you refinance and reduce your monthly payment by $300 a month. That’s approximately $3,600 you can put toward paying off debt. Once you’ve erased the debt, put this money toward increasing your retirement contribution if you’re a younger boomer, or building your emergency fund if you’re an older, retired boomer.
You might be reluctant to refinance because the process creates a new mortgage loan and resets your payoff schedule. Keep in mind, however, that you don’t have to refinance for another 30 years. There’s the option of refinancing into a mortgage with a payoff date comparable to your original term, perhaps 10 or 15 years.
