Should You Mortgage Your Home
It used to be that you spent 50 years at a
company and 50 years in your home, and when you retired, your home mortgage was
(happily) paid off. Times have changed. Certainly,
few people spend their entire careers at one company, and now many retirees are
shrugging off the conventional wisdom of paying off their homes at
retirement. Here are some points to
consider if you are pondering using your savings to dispose of that mortgage on
your Denver real estate:
·
Home Value: If you are one of the
unhappy folks who are underwater (that is, the value of your home is less than
what you owe on the mortgage), then paying off the mortgage will secure your
credit from any possible foreclosure
issues should you have cash flow problems later. But paying off that mortgage
also depletes your savings substantially, leaving you less cushion if
emergencies arise. Reverse
mortgages (mortgages based on the equity in the home) are certainly
an option for getting back at that cash later, but other investments may be
more income-producing in the long run.
·
Interest Rates:
If you are one of the many people who have taken advantage of the historically
low interest rates recently, your mortgage payment may not be the
burden it used to be. With your
retirement income from pensions, 401Ks and social security, you may feel more
comfortable holding onto your savings in a more liquid form rather than paying
off the house.
·
Tax Benefits:
Mortgage interest continues to be tax deductible,
so you may want to consider the tax ramifications for your situation. You can
only deduct mortgage interest on two houses, so if you are a snow-bird
commuting between several houses, ponder all the options.
·
Wanderlust: Paying off the mortgage
on your Denver house for retirement
makes more sense if you are planning on staying in that home for the
duration.
If you are considering
selling your home or buying a new one, I can help. I am a Denver Realtor specializing in listing
Denver real estate for sellers and
assisting Denver
metro area buyers in your search for a home. You can search all Denver MLS listings including short
sales, Hud Homes, and Foreclosures in all Denver neighborhoods at YourDenverHouse.com.
Give me a call today at 303-525-8721
or email me at Huffman@ccpre.com.
Please see my profiles and reviews on Trulia & Zillow.
Please see my profiles and reviews on Trulia & Zillow.