Once you stop working, will you still have to make a monthly mortgage payment? Carrying mortgage debt during retirement may be a heavier burden than you’ll want to bear. Anyone considering refinancing or taking on a new mortgage shortly before retirement should certainly think about the following items.

A mortgage payment will significantly increase your monthly living expenses.

Without having to make a mortgage payment, you may be able to comfortably live on much less during retirement. It could also take away from other goals in retirement, like traveling, funding grandkids education, or charitable giving.

You may lose financial flexibility.

Having a large fixed monthly cost is restrictive at any age, but it could be a bigger problem when you’re not receiving a regular paycheck. You may be forced to sell investments at inopportune times (like during a 20% market correction) in order to make mortgage payments.

The mortgage interest income tax deduction will be less over time.

You pay a lot more in interest in year 5 of a loan than you do in year 20.

As a result, with each mortgage payment you make, a larger percentage is applied to principal and a smaller percentage to interest.

Carrying mortgage debt into retirement could limit flexibility and potential retirement goals. Taking steps to be mortgage debt free could provide that increased flexibility to make retirement a more enjoyable experience.

Schedule an appointment with our team if you’re ready to develop a plan to pay off your mortgage before retirement.

Written By  Brett Sebion, Financial Coach
What is Financial Planning?
Brett Sebion, Financial Coach  – September 27, 2023
Life is busy, which is why you should always have a plan—especially when it comes to your finances. No matter what stage of life you are in, it is important that you have a financial plan to help you stay on track in how you are spending, saving and growing your wealth. We often hear […]
Keep Reading
Elevate Your Finances: October Webinar Series
Emerj360  – September 19, 2023
In honor of October being National Financial Planning month, we are bringing you a three-part webinar series to help set you up for success in reaching your financial goals. Retirement Readiness October 17th: 6:00 – 7:00 pm Even if you’ve been saving for retirement for years, there are several factors to consider near retirement to […]
Keep Reading
Comparing Types of Retirement Plans
Brett Sebion, Financial Coach  – September 12, 2023
No matter what stage of life you are in, it is never too early or too late to start saving for retirement. In order to retire when you want, you should be using retirement vehicles to save and grow your money. While there are many retirement plans to choose from, many people choose to participate […]
Keep Reading

What are you waiting for?

Everything we do boils down to this: by doing what is best for you, we do what’s best for our company. Helping you build financial security and plan for retirement so you can look forward enjoying life.
Open Account right-arrow-dark Sign Up Now right-arrow-dark