You are retiring soon, and you'd like to eliminate debt from your life. You've been paying down your mortgage with extra payments toward the principal balance for years and plan to finish paying the mortgage off when you actually retire.

Good idea? I'm sure Ben Franklin would have thought so, but financial matters weren't quite as complex in his days. Homes didn't gain in value then as they do now. If you have no loan against your home and its equity is continually growing, that equity really isn't doing a thing for you. You may end up house-rich and cash-poor.

But the idea of eliminating a long-seasoned mortgage that is providing little in the way of annual mortgage interest deduction is indeed attractive. There are three things that can be done.

First, you may consider refinancing, pulling out a substantial sum from your home and investing it very conservatively. That way, you would have money available to you should you need it.

Second, you might take out a home equity line of credit that will allow you to access money when you need it−and only make payments on it when you do indeed borrow.

Last, you might want to sell your home, and move to a home that better suits your new lifestyle and your financial profile. Your existing home may provide a sense of security. Don't let that security go dead on you! Consult with your real estate and mortgage advisors today. Just call Beth at (425) 450-5208 and visit her website at www.bethbillington.com.

Beth Billington is a Realtor® with Coldwell Banker Bain in Bellevue, WA.