In part one of this two-part blog series, we went over some of the reasons why some of those who are approaching retirement age often try to increase their mortgage repayment schedule to pay the entire home loan off before retiring. When this is financially possible, it’s a move that can not only reduce stress and make retirement budgeting easier, but also one that can reduce the total amount of interest you pay through the life of the mortgage.
At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to provide a number of mortgage resources for those in this age range, including reverse mortgages for those over age 62. While some who are able will try to pay down their existing mortgage before retiring, this isn’t always possible – and even if it is, it might not always be the most practical move given your situation. Here are some basic circumstances where you might not choose to prioritize this effort, plus how our loan officers will help.
In some cases, those who are not flush with extra income simply won’t be able to afford accelerating their mortgage repayment schedule ahead of retirement. There are several other major areas that must be budgeted for during this same period, and you might not have room in yours for making these extra payments.
And if this is the case, that’s totally okay! You are not necessarily putting yourself in any kind of bad position by continuing to pay your mortgage during retirement, so long as you’ve included this area in your future budgeting. It’s much better to be realistic about this than to strain your finances in a misplaced attempt to pay the mortgage down earlier than you realistically can.
Saving for Future
Down related lines, putting all your current funds into paying down the mortgage may significantly hamstring your ability to contribute to long-term savings. Locking all your money into home equity leaves very little left over, and is only good for taking out a home equity loan or selling your home – neither of which are common events during retirement.
Loan Officer Assistance
Are you on the fence here, unsure whether to divert more funds toward your mortgage payoff or simply continue making the same payments ahead of retirement? You’re not alone – this is a conversation many in this age range tend to have, both with their spouses and/or their loan officers. Our loan officers are happy to assist you with all the basic variables involved here, helping you evaluate your finances and remaining loan balance to determine the best course of action.
For more on how to handle your mortgage as you approach retirement, or to learn about any of our mortgage rates or home loan solutions, speak to the staff at Altius Mortgage today.