Whittier, CA

 

If you asked most people if they would be happy in retirement without a mortgage, the answer would probably be a resounding YES!! However, you have to look at the overall picture and what costs would be related to such an undertaking. Now, retiring with a mortgage poses no financial risk and at times can be a sound financial decision. Of course it's ideal to not have to have the worry of a mortgage, but you have to look a little deeper into what kind of lifestyle you envision for yourself in retirement. Do you plan to travel? Do you have hobbies? or how about plans to help with the grandkids tuition? With the ever rising costs of goods and services in this country, we can not forecast how much these same goods and services will be in the future, where as if you have a current mortgage with a fixed rate you are assured that the monthly mortgage payment amount will continue to remain the same. A few other factors to consider are age, heath and market conditions. Do you believe that based on your age and heath that you'll be able to enjoy enough of those years there mortgage-free? Do you have variable mortgage? If not, making more of a payment or adding to the payment will not change the monthly payment.

Emotional reasons usually fuel a persons decision to pre-pay a mortgage. Peace of mind can help you sleep at night, but it won't fund a decades long retirement. So before using that extra cash you got from a windfall to payoff your mortgage early consider the value of future flexibility. After all, goals often change over time.