Mortgage is something that that one could not easily escape from, not unless you'd allow your home to be taken away. But some mortgages are still being paid, up until retirement.
As per Bankrate, analysis made by Federal Reserve Survey of Consumer Finances that was conducted back in 2004 revealed that 32 percent of houses owned by individuals at a retirement age [65 to 74] were still carrying mortgage debts. 20 percent of households that is being owned by 75 and older still had mortgage.
This came into conclusion that nearly 25 percent of homeowners who considered themselves retired had mortgages.
With these facts being stated, is carrying the burden of having mortgage at this age something to avoid? Though some would still opt to pay off their mortgages, as per NBC News however, it isn't necessary to pay off one's mortgage after reaching the retirement age.
Diahann Lassuss, who is the president and chief investment officer of Lassus Wherley, stated that "that's not a one-size-fits-all answer today, because there are many other factors you have to think about."
As per Lassus, if one is paying off a mortgage just "because it's really bothering you that it's hanging over your head, you really want to start thinking about a longer time frame than tomorrow, because it will benefit you more for the long term to build those retirement accounts."
As per the website, carrying mortgages into the golden years does offer numerous financial gains, most especially with those who acquire low interest rates.
"What you can do is invest those dollars (and) your earnings could be significantly higher, which means you're using someone else's money to earn more so that you're able to build your retirement assets over time, and that tax deduction makes it even more cost-effective."
She even pointed out the pros and cons of mortgages vs investment returns to which she stated "But you also have to be able to sleep at night."
