Scenario:
Retired Couple
Home1 (500k) : Owing 150,000 on 30year arm (rate 5% going to over 6%)
Home2 (350k) : Rental Property (1300/month) Paid off
75k in CDs from earning 4% (coming due)
Risk averse to putting that cache in the market.
A couple of solutions we are considering:
1) Get a 15year fixed mortgage on Rental property to supplement the 75k liquid to pay off the adjustable rate mortgage. (interest deductible from income)
2) Refi primary to 15y fixed and pay down 75k
Or something else entirely…
