Will Your Mortgage Finish Before You Retire?
Somewhere in your renewal letter or your lender app there is a quiet line: at your current pace, your mortgage is paid off in 2038.
If you plan to retire in 2031, that one line is your whole retirement plan in a number. Seven years of mortgage payments still to make on a pension income.
Find your two dates
You only need two numbers: the year your mortgage ends at your current pace, and the year you want to stop working. If the first one is bigger, you have a gap, and a gap is easiest to close while you are still working.
Here is what closing one looks like. On a $210,000 balance at 4.89 percent with 13 years left, adding $150 to every bi-weekly payment pulls the finish line about two and a half years closer and saves roughly $15,000 in interest. Not a sacrifice, a nudge, and it only works because there is still time on the clock.
Your home is working for you too
Homes here are selling quickly and often well over asking, so long-time owners usually have more equity than they expect. Whether you plan to stay put, downsize later, or retire with no
payment at all, that equity is part of the plan, and knowing the number gives you choices.
Check your own dates
My Retirement Review takes a few minutes and lines your mortgage up against your retirement timeline, so you can see your gap, if you have one, and what would close it.
No pressure, and no obligation. Just your two dates, side by side, with help beside you the whole way.
Always in kindness, Tonia | The Mortgage Missus Inc.
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