SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I am trying to decide if I should pay off my house worth about $750,000. I owe around $120,000 on an adjustable-rate mortgage (ARM). On the other hand, my 4.5% interest rate just ended and I know the interest will continue to rise in this economy. My mortgage is $1,450 per month, having risen $400 in the last year. Interest is around $500 per month. I am 69, a retired teacher, have a state employee pension ...

Core Insights - The article discusses the financial dilemma faced by a 65-year-old individual with $400,000 saved for retirement, who is considering paying off a $104,000 mortgage at 6.015% interest within five years [1][3]. Financial Considerations - The financial expert emphasizes the importance of evaluating additional income sources beyond retirement savings, such as Social Security, pensions, or part-time work, to determine how much can be allocated toward the mortgage without affecting daily cash flow [4]. - It is crucial to assess the status of the emergency fund, recommending that the individual should have 3-6 months' worth of living expenses saved before making significant payments toward the mortgage [5]. - The expert suggests that the value of the home is important, noting that the outstanding mortgage balance is likely less than the home's market value, providing a financial cushion if needed [6].