Among the many challenges of retirement planning is whether you should pay off your mortgage before you retire. Though it’s collective knowledge to be debt-free as much as possible, it may not make sense or be possible for everyone. On one hand, having a mortgage during your retirement can affect your lifestyle, but on the other, focusing on paying off your mortgage prior to retirement can prevent you from saving enough.
Here are some pros and cons to paying it off early:
- You’ll pay less in interest, costing you less in the long run
- You might get a tax deduction
- You’ll have the peace of mind that you no longer have mortgage debt in your name and have equity in your home
- You’ll free up money for other expenses
- You could risk not having enough for retirement
- You could put a strain on your emergency savings
- You might not have sufficient funds for other debt such as car loans, school loans, and credit card debt
Whether or not it makes sense to have your house paid off before retirement will entirely depend on the specifics of your personal financial situation. Your mortgage strategy is an important piece of your retirement planning. So, give us a call and let us help you weigh your situation. We’re here to help make sure your retirement plan is built to last a lifetime.
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