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Is your mortgage debt the same?
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People want to be mortgage-free by the time they retire. If you still owe a lot of money on your home loan in your 60s, you might want to come up with a plan to get rid of it.
The average mortgage balance for people in their 60's is pretty substantial. It's $242,651 according to personal capital.
Many people buy homes early in their lives. You would think that their mortgage balances would go down by that time. As far as Personal Capital's data is concerned, it's not the case.
People don't pay off their mortgage in time for retirement. Don't worry if it isn't doable for you. Carrying a home loan into the post-work stage of your life will be a team effort.
It's possible to get rid of your housing debt before you retire. You may find that you don't have as much income as you used to. Expect to get the bulk of your income from Social Security if you don't have a lot of savings.
Now, once your income drops, you may find that it's harder to keep up with your expenses, and you may have to make some spending cuts, like dining out less frequently or taking fewer trips. But if you can pay off your home in time for retirement, you'll have one less monthly bill to worry about. That could buy you a lot more wiggle room.
The average person in their 60's owes $243,000 on their mortgage. Paying off that balance may not be feasible if you are within a year or two of retirement. You don't have to carry that loan into retirement with you.
Home values are rising nationally. If you're willing to downsize, you might be able to make enough money to buy a new place.
You owe $240,000 on a home that sold for $640,000. That's a lot of money. You might be able to take your remaining profit and buy a $250,000 home even if you lose some of your real estate agent fees. If you don't want to worry about having a mortgage in retirement, that's a good solution.
Even if you are able to pay off your home before retirement, you will still have to budget for housing costs. Maintenance and repair costs will not go away. If you don't have a mortgage, all of the other housing-related bills can be more manageable.
There is a possibility that this could be the case.
Mortgage rates are going up quickly. They are low by historical standards. If you want to take advantage of rates before they go too high, you will want to find a lender who can help you.
Better Mortgage can be found there.
You can get pre-approved in as little as 3 minutes and have your rate locked at any time. Another good thing? They don't charge origination or lender fees, which can be up to 2% of the loan amount.
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