A home mortgage and a retiree don’t mix, do they? Someone nearing retirement would certainly prefer a hassle-free post-employment phase in their life, but more often than not, most retirees still face the burden of the mortgage on a real estate investment and the scythe of foreclosure that comes with it. looms above their heads. .
You have two options in this situation: 1) pay it back or 2) refinance it.
It’s a sad fate for a 65-year-old man to still worry about where his next mortgage payment will come from at a time when he has to spend his retirement fund on whatever pleasant surprises life may still throw at him, like trips and vacations, golf trips or a day at the beach. On a sadder note, there are those who worry about mortgage payments, while piles of unpaid hospital bills pile up on their side shelves. In either case, repaying the loan BEFORE retirement is the best option. However, when you have no choice but to defer your mortgage until retirement, you can decide to either pay it off or refinance it.
The million-dollar question: What’s the best way to take it?
First, determine the remaining balance on your mortgage. Will you be able to repay it in full? When the resources are available, why not? Nothing beats the peace of mind derived from being debt free. When this is the option you choose, you can make temporary “compromises” or negotiating agreements with yourself and with those who will be directly affected by your decision. Wanting to repay a major account involves sacrifices – you may consider taking another job even after you retire, or you may choose to give up some desires and focus on your immediate needs.
Second, consider refinancing when your outstanding mortgage balance is still too high for you to fully pay off at once. Consult a reputable mortgage investor near you. He can offer you advice that is similar to his expertise and can help you make an informed and intelligent choice.
Third, do the math. What is your mortgage interest rate? If you invest your money elsewhere, can you earn interest that can exceed or offset the cost of your money spent on your mortgage interest payments? If possible, by all means opt for refinancing, which generally offers lower interest rates; otherwise, pay the balance in full.
Ideally, retirement should not be weighed down by concerns that should have been dealt with during his productive years. But life is far from ideal for most, and they face the rigors of saving on their mortgage payments even in retirement.
It is advisable to consult a reliable mortgage investor company for sound advice whenever needed. His expertise and skill in dealing with mortgages can redirect your path to the best option you can take during your retirement. When you do, you can look forward to truly happy “sunset” years ahead of you.