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Homeowners hanging onto mortgages in their latter years.

It once was thought that a house should be paid off before one retired. That is changing.

http://mobile.bloomberg.com/news/2014-08-28/boomer-wealth-depressed-by-mortgages-poses-u-s-spending-risk.html

Another though to this is that families are deciding to keep houses in the family so having a mortgage later does not have the same impact.

Comments

  • I just reviewed my credit report and 80% of my monthly debt is associated with my home in the form of a first mortgage (4%/30yrs) and home equity (3%/15 yrs). I recently took out a first mortgage on my (free and clear) home and used the cash to purchase a (free and clear) retirement property. I will eventually sell or rent the first property, but in the meantime I feel as though I am shuffling the credit/equity deck in my favor.

    Rates are low and having cash allowed the deal on the second home to go through smoothly.

    I make my own coffee, don't smoke, love to cook (eat in), don't subscribe to cable and I take these savings and pay my mortgage. Works for me!
  • Sounds like a plan! Congrats.

    OJ
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