Mortgage Matters

Happy Family Floor

Does your mortgage matter?  Are you better off renting?  Sometimes life can feel like a daily grind.  Working to pay your bills and your mortgage, just trying to get through to the weekend so you can finally relax.  Resentment can build up pinching pennies to save up for a week’s vacation.  Some of us have even settled on renting instead for a couple hundred dollars less a month to spend a little more on clothing and entertainment.

The truth is that a mortgage doesn’t matter, but your commitment to taking one on and paying it down does matter.  It matters a lot, and so do you.  That couple hundred dollars extra you’re spending every month to maintain your own home is an investment in your future and the future of your loved ones.  25 years of a little extra cash flow could result in a financially bleak future.  The results of the forced savings from your mortgage however, will lead to large windfall in the form of a free and clear home.  If you’ve done a good job managing the rest of your finances then a free and clear home will allow you to economically live out your retirement years in your existing lifestyle.  If you haven’t been able to accumulate any other savings over the years, then your free and clear home is available as your emergency reserve.  You can sell it for a large tax free windfall and move into a rental accommodation or you can look at a reverse or other mortgage options.

Making the effort to pay off your mortgage not only assures you a better financial future, it removes any financial burden from your loved ones to look after you.  It may even put you in a position to help your kids with their first mortgage.  A mortgage may not matter, but your commitment to taking one on certainly does.

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