How To Lower Your Mortgage Payment In Retirement

If you take a quick look at your finances, you’re probably going to notice that your biggest expense is your mortgage. It’s certainly my biggest monthly expense. It’s your house; and it’s probably the single most expensive thing you will ever purchase (unless you have four kids like we do, and then college will probably be the most expensive thing you ever purchase). Ideally, you will not have a mortgage payment in retirement, but that’s just not the case for many taxpayers these days. It seems as if more people than ever before are retiring with less money and more bills. That’s unfortunate, but it seems to be the sad reality of retirement for many. If you do have a mortgage during retirement, the least you can do is try and lower that expense, and we can share with you a few simple tips on how you might be able to do just that.

Sell your home

If you have a larger home, you might want to consider selling for a smaller one. It’s probably not really necessary for you to have 5 bedrooms and 4 baths when you are all alone and without your kids; especially if they live close and don’t stay with you during their visits. Something smaller and more affordable is a great way to make sure your mortgage is smaller.

Move somewhere more affordable

If you live somewhere with a high cost of living, take your retirement and move somewhere with a lower cost of living. Perhaps somewhere you can open the windows most of the year instead of using your heat and air; that will save significantly on your utilities. You can also save money on everything else you do, even on a house that’s more affordable.

Move in with the kids

I know it probably doesn’t sound like much fun for anyone, but it could be. If you and your kids are close and they don’t mind having you around, consider it. More than ever, households are becoming multi-generational thanks to the fact that many grandparents are moving in with their kids and grandkids so that they can help with the kids while the parents are at work.

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