question regarding home payoff vs savings

[onethatcares]

my wife and I are both over 60 though not by much. We recently re-fied our home in order to
obtain a lower payment on the life of the loan. We've been making the payments plus an added $200.00 each
month.

My ? revolves around the fact that the amount left to pay off is about 70K. Should we make the the required
payment and bank the other 200? I don't see us paying off the note and our kids all live somewhere else.

I'm going for the savings part and need to convince her it's better to have liquidity than a lower mortgage balance at this time.