You might wonder if you should pay off your mortgage before retirement. The DiMora Team are real estate experts in the Novi and Northville neighborhoods and, unfortunately, we know there’s no one-size-fits-all answer to this question. Your finances and goals are so unique that the path toward the retirement of your dreams will be just as tailored. For some, paying off the mortgage while they’re still earning income is a “must-do” to preserve limited funds once the paychecks stop flowing. However, leaving no cushion in your savings to eliminate mortgage debt could leave you financially strapped and unprepared for any unexpected expenses down the road. The financial security of not having the burden of a house payment during retirement is the biggest benefit. If you’re on a limited income every month, like say social security, now that can go towards living expenses rather than funding your home. While paying off the mortgage before retiring means lowering your monthly housing expenses by a considerable amount, it doesn’t eliminate them completely. You’ll still need to plan on paying for things like property taxes, homeowners insurance, maintenance expenses, and utilities. Check out below to see what sold in Briarwood in May 2021:
24454 Redwing Drive, Novi: 4 bedrooms, 3.1 bathrooms, 2,485 sq. feet, 2.5 car garage, Sold Price: $500,000
Briarwood Home Sold
May 2021
Other benefits come with freeing up your monthly cash flow. You’ll be reducing the amount of interest you’ll pay over the lifetime of the loan by paying it off early. You’ll also have the financial security of a debt-free asset whose cash value you can access with a home equity line of credit. For more information on Briarwood, or similar Northville or Novi neighborhoods such as Abbey Knoll, North Hills and Lakes of Northville, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.