Should You Mortgage Your Home

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.


 

Thinking of Downsizing? Pros of Living In Smaller Homes in Denver

Thinking of Downsizing? Pros of Living In Smaller Homes in Denver

 There are many reasons to consider downsizing your Denver home.  Obviously, if the kids have left the nest, you’re recently widowed, divorced, or just have more house then you need, or want to clean and maintain, moving to a smaller home can simplify your life in many ways. But even if the size of your household has not changed, there are still benefits to living in a smaller house.

·         Maintenance will be easier. Take a lesson from monks: The more possessions you have, the more demands they make on you. It’s no different with your Denver house. It’s easier to clean 1,000 square feet than 3,000 square feet or more. The more plumbing you have, the more chances that something will go wrong with it. The bigger your roof, the more expensive it is to replace, and so on.

·         Life is easier in a small home. Small homes tend to be only one story. It’s nice to not have to climb the stairs every day. You may even find a one-story home that has no stairs to negotiate outside, making it wheelchair-accessible.

·         Small homes are cheaper to heat and cool. Energy prices increase all the time and always will. While it’s important to have good insulation and tight windows, all things being equal, the smaller your square footage, the lower your utility bills.

·         Insurance will be cheaper. The size of your home is one of the main factors determining how much your home insurance costs.

·         Taxes will be lower. Again, property taxes are based partly on the square footage of your home.

 

While you may not be ready to move into a tiny home, it’s worth considering the benefits of living in a smaller home. If you want to explore the possibilities, I am a Denver Realtor specializing  in helping Denver metro area buyers and listing Denver real estate for sellers. You can search all Denver MLS listings.  Call me directly at 303-525-8721 or email me at Huffman@ccpre.com 

Please see my reviews and profile on both Trulia & Zillow 

Should You Downsize Your Denver Home?

There are many reasons to consider downsizing your Denver home. Obviously, if the kids have left the nest, or you’re recently widowed or divorced, moving to a smaller home can simplify your life in many ways. But even if the size of your household has not changed, there are still benefits to living in a smaller house.

·         Maintenance will be easier. Take a lesson from monks: The more possessions you have, the more demands they make on you. It’s no different with your Denver house. It’s easier to clean 1,000 square feet than 3,000 square feet or more. The more plumbing you have, the more chances that something will go wrong with it. The bigger your roof, the more expensive it is to replace, and so on.

·         It’s easier to age in a small home. Small homes tend to be only one story. As we get older (and we all are), it’s nice to not have to climb the stairs every day. You may even find a one-story home that has no stairs to negotiate outside, making it wheelchair-accessible.

·         Small homes are cheaper to heat and cool. Energy prices increase all the time and always will. While it’s important to have good insulation and tight windows, all things being equal, the smaller your square footage, the lower your utility bills.

·         Insurance will be cheaper. The size of your home is one of the main factors determining how much your home insurance costs.

·         Taxes will be lower. Again, property taxes are based partly on the square footage of your [city] home.

While you may not be ready to move into a tiny home, it’s worth considering the benefits of living in a smaller home. If you want to explore the possibilities, I specialize in helping Denver metro area buyers and listingDenver real estate for sellers. You can search all Denver MLS listings or contact me directly and I will assist you.  Call me directly at 303-525-8721 or email me at Huffman@ccpre.com . 

Please see my reviews and profile on both Trulia & Zillow