>>One option might be is to get a "second" mortgage now. Find a bank/credit union that will allow you to open a HELOC for 80K and shop for the best fixed rate. Use the proceeds of that loan to pay off your first mortgage. Use a high yield savings account to save for your taxes each year (like emigrant direct). Typically this kind of financing carries 0 closing cost, and should be easily approved because of the equity you have in your home.

This sounds very interesting. I was not aware of this option. I will check it out.

>>Do you need income from your investments to supplement your income?
If this is the case then reducing your nest egg can really hurt you.
Are you dipping into principle of your investments?

Not dipping...yet. But yes, my financial advisor told me I should keep working fulltime as a teacher, but that would kill me off wayyy to soon.

Thanks very much for your insight and suggestions.

ellie