The Conventional Wisdom
Financial advisors often recommend paying off mortgages before retirement to reduce fixed costs. However, low mortgage rates and other investment opportunities change this calculation.
The Math
If your mortgage rate is 3-4%, investing returns may exceed the guaranteed payoff from accelerating mortgage payments. Compare guaranteed mortgage payoff against investment growth.
Personal Factors
Your risk tolerance, investment discipline, and comfort with debt matter. Some retirees prefer eliminating debt for peace of mind despite potential financial optimization.
