Suze Orman told caller Glenn, 52, he was not truly saving: his $5,091 monthly income was $960 below his $6,051 spending, despite setting aside $900. She said refinancing his mortgage could cut payments by more than $1,000 a month.
Orman said Glenn repeatedly tapped his emergency fund after transferring the $900 because his income did not cover his expenses. She advised counting the transfer as an expense in his budget.
Glenn planned to retire at 65 debt-free and pay off his home. The article says Orman calculated that refinancing to a lower-rate, 15-year loan could let him pay off the mortgage in six years while paying less; she said the change could leave him with $1.9 million and a paid-off home at retirement.
