LeavingOhio
Recycles dryer sheets
It never ceases to amaze me about how many folk still have mortgages on their main abode after (or during) retirement. I can understand it on a second home. I read about people refinancing etc. at good rates, not sure if all are retired or not. Would not paying off a mortgage be a main priority first, in order to have an affordable ER or R for that matter. It was certainly a priority for us before we retired the first time. I guess if one has a high steady income or something it may not affect them. But I somehow think that most of us are not in that position. While we are probably comfortable, I would think that NO Debt would be the order of the day. Am I wrong?
I am curious as to how many of us have mortgages on their primary property and perhaps the logic of why if it is not too personal. I live in an area in Florida where about 75% - 85% of my neighbors are retired. For some the homes are seasonal or second homes. I would say from the folk I know, they ALL have paid off their mortgages, and own their homes or both if they are seasonal free an clear. There ar a couple that I do not know either way, but I would think they do. I am in the minority as I still work part time but am similar in that I do not have any debt.
Assuming a retired couple is paying on average $1000+ in this day and age for their mortgage. Does that mean that they have to find that from their retirement income sources.
Or home is worth now about $600k (hopefully) we are mortgage free. This applies to about a $2,000 PM savings IMHO. (I picked that number out of the air because I have no idea really).
What about others here if you do not mind sharing. Also you opinions on having one verses not if it is applicable. And either way how does that effect the retirement quality of life.
SWR.
There are many ways to skin this cat, but I do prefer (and will not have one) to have no mortgage in retirement. For those with decent pensions (my parents for example) and SS and other investment income, carrying a mortgage might not be a big deal. My parents still have a mortgage even though they've been retired for about 10 years now. The reason is that my father was a Methodist minister and didn't own a home until he retired (he always lived in homes owned by the church). He was forced to retire early due to a then "incurable" cancer that he had that he has now been cancer free of for about 7 years! He's the first recorded person to be "cured" (he doesn't like to use that word, so we'll say "put into remission") of this cancer. Anyway, he has a nice pension, they get SS, and my mother invested for their retirement while working as a nurse. They can handle it all just fine.
For me, it will just be my own investment money and SS. My wife has been a stay at home mom for years and only recently (last 2 years) has been working part time. Due to some health issues (fibromyalgia) she may never move from that level of working, and hopefully she will be able to continue that level of working. Our projected income when I want to retire at age 60 (before getting SS) is just about $40,000 a year. This, for us, is only doable if we are debt free including the house. When we both turn 62 just a couple years later (3 for my wife), we COULD then add Social Security income which in future dollars (and future SS projections) would more than double our income. So, if I were to continue working until age 62 and then retire, I could make it with a mortgage the size of the one I have now, but I'm looking to retire earlier than age 62, so having no debt then is a must for me.