Planning for Retirement: Should You Pay Off the House Early?
Colette Leavitt faced a difficult financial decision a few years ago, as she approached her sixties. She originally planned to retire early, at age 62, with her mortgage paid off. She would be free and clear of the financial burden of monthly payments. "It would open up some income to do things for enjoyment, as opposed to obligation," says Leavitt, of Hooksett, N.H.
But in the end, Leavitt, now age 60, decided to keep her loan. She owes just $49,000, at a rock-bottom 3.25% interest rate. Despite the low balance, she felt the peace of mind of building up her savings and keeping cash in hand for future expenses outweighed her initial desire to
