The Importance of Paying Off Your Home Mortgage before Retirement

February 3, 2016 by  
Filed under Real Estate

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The-Importance-of-Paying-Off-Your-Home-Mortgage-before-RetirementMost homeowners await the day that they see their final mortgage monthly bill. Not only can they find peace that they no longer have a mortgage burdening them, but they also can also truly call their home their own. Advisors have long suggested homeowners to fully pay off their mortgage before they hit retirement. Unfortunately for many, financial hardship shows its ugly head and knocks people off the path to success. In order to achieve your goal, there are certain tactics that you can implement in your financial plans to make your retirement more enjoyable.

Increase Your Mortgage Payments

The increasing levels of debt building up on the backs of Americans continue to be both a pitfall and a hindrance. There are some advisors that recommend holding onto a mortgage to be able to write off interest payments. However, you’ll probably agree that no debt is good debt.

“Up” the Pace

One way that you can achieve a mortgage-free retirement is by paying biweekly instead of monthly. Doing so will increase the pace that you pay your mortgage without necessarily feeling the pinch doing so. Another option that you have is to refinance for a shorter length of time and opt for a better deal.

The Positives of Paying Quicker

By increasing your monthly payments or paying at a quicker pace, your financial well-being could benefit in the long run. By implementing a plan and executing it as strictly as you can, your retirement won’t be held down by a remaining balance of any amount.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has helped thousands of homebuyers find the house of their dreams.