Being mortgage-free as you reach retirement means that you may be able to spend your money or savings on vacations or anything you want to do. It will also give you peace of mind, as you can exit the career land without having to worry about your monthly payments. With several years of paying the principal and interests every month, you only deserve to retire without its burden.
Altius Mortgage Group and other mortgage companies share a few ways on how you can retire without a home loan:
Make Extra Payment
Making extra payments monthly can help you shave off the balance in your mortgage a little faster. You can do so by creating a budget and sticking to it, as well as cutting back on other household expenses and luxuries. Simply be sure that your mortgage program has no prepayment penalty. You can ask your lender about this before signing on the dotted line or agreeing on the loan.
You may be able to pay off your mortgage earlier by switching to a shorter-term. If you, for instance, have a 30-year fixed rate loan, you can refinance to a 15-year mortgage, particularly if you still have 20 years or more to pay off the balance. While your monthly payments will be higher, you can be free of the burden 10 years earlier, which also cuts the total costs of the interests and the loan.
Get a Roommate
If you live alone or have an extra bedroom to spare, you may want to rent it out or get a roommate. You can use the rental income to make extra mortgage payments and pay off your loan faster. You can also use the money for paying utilities, bills, debts, and other things. Having a roommate can also offer companionship and help with the chores.
If downsizing or relocating to a cheaper city is not an option for you, you can consider the tips mentioned above. You can talk to a reliable lender to know more about your options, but be sure that you are not limiting yourself too much in an effort to pay your loan faster.