Is Paying O몭 Your Mortgage Before Retirement a Good Idea?
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by Brooklynn Chandler Willy | Dec 2, 2022 | Brooklynn Chandler Willy, Retirement Planning
In retirement, it is a smart idea to minimize your expenses. Doing so will allow you to eliminate a high cost and ensure you are not forced to become homeless. Repaying your mortgage can also help ease your 몭nancial stress and provide peace of mind. Paying o몭 your mortgage before you retire is a decision that di몭ers from person to person. Here is a breakdown of reasons you should and shouldn’t pay your mortgage before retirement. Why You Should: Reduced Monthly Expenses Taking care of your mortgage early can help lower your monthly expenses if you retire with a 몭xed income. Since it takes up a large amount of money each month, you can live on less once it is no longer in your 몭nancial situation. Lowered Interest Rate Your loan payments will eventually need payed, and you will likely spend a signi몭cant amount on interest. Doing so will allow you to free up some money for something else. Although you may be unable to deduct mortgage interest, the lower payments will make you more likely to claim your taxes. Also, you can claim more on your taxes as interest payments decrease.