Keep Your 2.8% Mortgage or Refinance? It Depends on Your Stage of Life
What’s better, a 6.5% mortgage with a $2,000 payment or a 2.8% mortgage with a $3,000 payment? It depends.
If you’re retired
Cash flow matters most. Dropping the 2.8% loan for a new loan with a lower monthly payment can free up money for everyday living, travel or healthcare, even at a higher rate.
If you’re at peak earnings
Keep that 2.8% and increase your monthly payment to $4,000. Every extra dollar goes to principal, and you’ll watch the balance fall.
The rate isn’t the whole story
Many homeowners are hesitant to give up a 3% mortgage, and for some that’s the right call. The better question is what you need your mortgage to do for you over the next 10 years. If you’d like to run your own numbers, call me…
Examples are for illustration only and are not a rate quote, a commitment to lend or an offer of credit. Rates, terms and eligibility vary.
Originally published in The Trusted Advisor, August 2026.
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