Should You Pay Off Your Mortgage Before Retirement?

Abstract

Retiring with a mortgage doesn’t typically pose a financial risk, and at times it’s the best financial decision. Emotional reasons usually drive the decision to prepay a mortgage before retirement. Paying off a mortgage early may reduce costs in retirement. Using extra income or savings to pay down a mortgage faster moves your most liquid asset. If you can borrow money for less than an amount you can reasonably expect to paydown a mortgage. It can also reduce liquidity. For one, any savings is a. murders is a other factors to consider. The value of a mortgage can also be a factor to consider in your retirement. After all, goals often change over time.