Your mortgage and your retirement

As you get older a question you may find yourself asking:

“Do I want or not want a mortgage after I retire?”

It’s an excellent question that every homeowner should ask however every situation is different so there is no easy answer.  First and foremost – be open to hearing many solutions.  The best solution for you may not be the one you are leaning towards so it’s important to be open to ideas even if at first you think the idea is not very good.  Second; do California refinanceyour research and ask questions.  Third; be realistic.

While everyone would love to be debt free including no mortgage the reality is having some debt (provided it’s manageable) can provide benefits.  There are tax benefits to having a mortgage, when you payoff your mortgage you lose your mortgage deduction.  If you payoff your mortgage that money is not liquid; and if you need the funds asap you might have to sell your home for less than it’s worth to get your funds fast.  When you payoff a mortgage you miss out on other investment opportunities and with interest rates below 4.00% it’s not too hard to find investment returns above that.  So if you have a mortgage; make sure you have a low mortgage rate at terms you can easily afford.

Not having a monthly mortgage payment is a great feeling and knowing you truly own your home provides a certain level of comfort and satisfaction.  Not having the monthly payment opens you up to possibly investing in a rental property and/or freeing up monthly cash flow (which is huge for fixed income homeowners).

There are benefits to both and important to make sure you take your time, do your research and ask lots of questions to figure out the best solution for your short and long term goals.  If you have any questions or would like a no cost/no obligation quote please contact us directly at 1-800-550-5538.  We have a top rating with the Better Business Bureau and the Business Consumers Alliance, great customer service and industry low mortgage rates.