Planning your finances before retirement? You’ve come to the right place. One of the most pressing financial concerns is whether or not you should repay your mortgage before hitting the next chapter of your life.
Generally speaking, there’s no clear-cut answer to this question. A lot depends on the interest rate on your mortgage loan. If the current mortgage rates are low, it makes sense to wait until the rates increase.
But, there are several benefits of retiring your mortgage early:
Greater income for retirement
If you’re spending a substantial amount of your income on your monthly mortgage payments, then it’s better to pay off the entire mortgage as soon as you can. The amount of money spent on your monthly mortgage can be used to meet regular expenses.
Invest in assets
Retiring the mortgage early can help you save cash for the future. You can invest your cash in diverse assets, such as stocks, treasury securities, and more, and earn high returns.
Provides financial security
With mortgage paid off, you will feel a financial burden during your retirement days. You can enjoy your retirement, without having to worry about working somewhere to meet your monthly expenses.
Not many Americans are able to live a debt-free life. Entering retirement without the financial burden of mortgage payment will give you peace of mind.
In many cases, people plan their financial affairs but face bankruptcy due to high mortgage debt.
Paying off mortgage early is absolutely safe. There is no risk involved. By paying off mortgage debt every month, you will have a smaller obligation in the future. Not to mention, you will feel a sense of security as you will gain complete ownership of your home.
Making a smooth financial transition into retirement isn’t easy. A financial advisor can help you make the right decision regarding mortgage payment.
For information on acquiring and repaying mortgage loans, contact our team. As a certified, licensed and insured mortgage brokerage company, we offer comprehensive assistance and advice on how to secure the best conventional mortgage loans at the most affordable rates.
We deal in a wide range of mortgage products, which includes but is not limited to, FHA, VA, conventional, adjustable, fixed-rate, flexible, jumbo, conforming, combined / hybrid ARMs, and more.
Our professional brokers offer clients customized solutions that suit their financing needs, interests and goals.
Over the years, we have built lasting ties with a number of well-known mortgage lending companies across the country.