30 Secrets All Baby Boomers Need to Know About Money

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.