Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I wasn't meaning to criticize you... I just used your post to leverage my point.
The reason I carried a mortgage is it was the only choice I had (then).
I'm also mortgage free (now).
That point I was trying to leverage being that with the current volatility of the RE and job markets that beyond the ability to earn in the first place (which used to be the limit of our constraint) the kids now have to allow for the flexibility to relocate to keep earning.
This new reality has to be considered which raises whether having a mortgage at all is still the best or default approach to take absent the sort of solid ties to employment we once enjoyed.
Oh, I get it alright.
The Q is how to get there (now) which is a bit more complicated than it used to be.
True, there is also a geographical aspect to consider. If you happen to be lucky enough to have decent employment and live in a place where property is severely impacted like Nevada, Florida, Rust Belt, etc, then your strategy should be much different than areas that are still overpriced, like where I live.
If I were a young person, in a severely price depressed area, I would be using as much leverage as I could to acquire as much real estate as I could.
When you are already at the bottom, there is little except upside left.
I believe that the key to paying off a mortgage early is eliminating any and all other debt. When you start adding up credit cards, car payments, 2nd mortgages etc., it really eats up what you can throw at the primary mortgage. There is nothing magic to it... It's planning, budgeting and just plain old fashioned hard work that gets you to the finish line. It also helps to learn to live without some stuff that you don't really need anyhow. Retiring with a mortgage is not a plan.
Thanks! When I was laid off (after being at my last position 10 years), I was advised to "go back to school" to pursue another career, commute to the "city" for a job, or worse, MOVE to the city. At this point in my life,
I'd rather be a little poorer than put up with all that.
Since our mortagage is paid off, we've drastically trimmed our living expenses. We have our house in a semi-rural area and a half acre of vegetable gardens. I'm content to stay home, live simply, grow our own produce, and enjoy the solitude. I found a decently paying part time job very close to home. It's not glamorous or challenging, but at this point in my life, I care only about paying the necessary bills, not being stimulated or challenged - except learning to grow something new. It gives me lots of time to do what interests me most, which is garden.
We paid off our mortgage years ago. We decided we would rather have the peace of mind that goes with no mortgage.
When I retire, we will sell our current home and move to an area with a smaller population, lower taxes, and insurance rates. We are now in a high tax, high insurance premium area.
Unfortunately, even though we will be looking for a smaller house, we will end up building. We need a wheelchair accessible house. Try finding one of those on the market!
If we do end up with a mortgage, I will go back to work part time and the money will go to paying off the current mortgage.
We are most comfortable when we have 6 months living expenses saved, a year's worth of food stored away, and no outstanding bills!
I view not having a mortgage at retirement as an absolute essential step in preparing for retirement., IMO
I made my last mortgage payment in 1998, retired at the end of 2001 (at age 55). No mortgage was an absolute requirement, or car payments, or CC debt, or anything else. No debt is more liberating than I ever imagined it would be, and it was my goal.
I've had my mortgage paid off since last October. It's wonderful to owe nothing on my house. It's true that you can't accomplish this without avoiding other debt. If you have car payments, credit card bills, etc you'll never be able to get the mortgage paid off early. Mine was a 15 year mortgage and I paid it off after 7 years.
I view not having a mortgage at retirement as an absolute essential step in preparing for retirement., IMO
I made my last mortgage payment in 1998, retired at the end of 2001 (at age 55). No mortgage was an absolute requirement, or car payments, or CC debt, or anything else. No debt is more liberating than I ever imagined it would be, and it was my goal.
I totally agree! That is one of my goals. I hope to have my mortgage paid off between 50-55 for those same reasons. If I stay the course I would have mine paid off closer to 50. My goal is to be semi-retired by 55 or at least choose where I work and when I work; quality of life over the need to make lots of $$$$.
I totally agree! That is one of my goals. I hope to have my mortgage paid off between 50-55 for those same reasons. If I stay the course I would have mine paid off closer to 50. My goal is to be semi-retired by 55 or at least choose where I work and when I work; quality of life over the need to make lots of $$$$.
Very good responses so far!
good plan.
If you are making a $1,000 monthly mortgage payment, likely $980 of it [or more] is interest.
They used to tell us to plan on housing expense to be 60% of your total income.
Between a mortgage, car payments, and CC debt, how much interest payments does a retiree really want to be making?
If you are going to be paying $10k/year in interest, then immediately you need an extra $10k in your retirement income.
If you pay $20k/year in interest, then you need an extra $20k in your retirement income.
I think it is a much better plan to simply get out of debt. No interest payments going to anyone.
Our home costs us less than $1,000/year. No mortgage, no debt, just taxes and insurance.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Mortgage free
