On the mortgage or not front, the only true expense is the interest. Paying down principal does not change a household's net worth. And even then the only net outflow is the spread between the after tax mortgage rate compared to the after tax rate of return of alternative investments. If rates go down from recent historic lows, retired homeowners with fixed rate mortgages can refinance again or pay off the mortgage, if they go up then they can pocket the spread for decades into the future.
__________________
Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
|