To Pay or Not to Pay!

Should You Pay Off Your Mortgage?

If you are planning on paying off your mortgage, you won't be alone.  Nearly half of the borrowers last year between the ages of 65 and 69 had their homes paid free and clear.  If you have the means and are considering paying off your mortgage, there are 3 compelling reasons to do so:

1. Increasing Your Net Worth - although a home is usually an excellent investment, by not paying a mortgage with your assets, they can be allocated to other investments that gain interest and increase wealth.
2. Reduce Interest Expense - relating to reason #1, paying a mortgage will drain your assets.  A typical $200,000 30 year mortgage at 4%, will cost you $145,000 in interest over the life of the loan.
3. Reduce Debt Stress - for many, having a mortgage looming over their head can be very stressful.  Not having a mortgage can give many homeowners a feeling of safety knowing that if there is an interruption in the flow of income, the house will not be put at risk.   

Whether you are planning on keeping your mortgage in place, planning on accelerating the payments, or considering paying it off, we on the Easterbrook Team are happy to consult with you to find solutions that meet your retirement needs.

916.850.6050