I asked Mark Dietz, Financial Advisor with Dietz Wealth( 720-839-5403) to share some common Real Estate questions he gets from his clients.
“ I get asked all the time about whether it makes sense to pay off your mortgage especially when most people have such a low interest rate. Generally, despite the low interest rate, an individual should still aim to have their mortgage paid off at their anticipated retirement date. Although the rate is low, the principal still needs to be paid back and that’s most efficient when done with earned income. If they carry the mortgage into retirement, they are then usually forced to pay their mortgage with investment proceeds. Using investment dollars to pay a debt means you’re not using those dollars to enjoy your retirement. You could also be paying tax on those funds, so the cost of your mortgage could also be higher when you add in the tax burden”.
Always consult your Financial Advisor and or Tax Professionals for the best option for you. Hope this information helps!
