Should I Pay Off My Mortgage Before Retiring?

The idea of entering retirement mortgage-free sounds comforting. Who doesn’t want to live out their golden years with fewer bills and more breathing room? But here’s the thing: just because it feels right to pay off your mortgage before retiring doesn’t mean it’s the smartest move for everyone.

At LaTour Asset Management in Springfield, we hear this question often. It’s not a simple yes or no answer—this is a personal calculation that depends on your lifestyle, savings, income sources, interest rate, and long-term goals. And like most things in retirement planning, you must think long-term.

Why Some People in Springfield Choose to Pay It Off

Let’s start with the emotional and practical appeal of ditching the mortgage.

• Less Overhead, More Peace of Mind: Eliminating one of your largest monthly expenses can bring a serious sense of relief, especially when living on a fixed income.
• Interest Savings Add Up: If your mortgage rate is high, an early payoff could save you thousands over the life of the loan. That’s money that can stay in your pocket—or go toward travel, gifting, or leisure.
• Financial Freedom Feels Great: Some clients simply like the idea of owning their home outright. It takes away a lot of “what-if” situations when there are no strings attached. For many in Springfield, that peace of mind is priceless.

Why Others Choose to Keep the Mortgage

But hang on—there’s a flip side (and it’s not just about opportunity cost). Some people find it’s better to maintain their mortgage into retirement.

• Draining Your Savings to Pay Off the House Could Leave You Vulnerable: You don’t want to be house-rich and cash-poor when life throws you a curveball.
• Mortgage Rates May Be Lower Than Your Potential Investment Returns: If your rate is 3% and your investments could earn 5–7%, paying it off early could mean missing out on growth.
• You Might Lose a Valuable Deduction: If you itemize deductions, mortgage interest can reduce your taxable income. Paying off the loan wipes out that benefit.

Also, remember that not all debt is bad debt. There’s a big difference between high-interest credit card debt and a low-rate mortgage. If you’ve still got other obligations, your money may be more effective elsewhere.

What’s the Right Answer?

Here’s what we tell clients: this decision depends on your personal goals, comfort level, and overall plan. But we can walk you through a few important questions:

• What’s Your Mortgage Interest Rate? Higher rates tend to make early payoff more appealing.
• How Strong Is Your Savings Cushion? You’ll need enough set aside for healthcare, emergencies, and lifestyle needs.
• Do You Have Other Debt? Knock out anything with double-digit interest first.
• Are You Risk-Averse or Comfortable With Volatility? This answer shapes whether you prioritize certainty or potential returns.

For many Springfield retirees, the best path isn’t either/or—it’s both. You might continue making regular payments while maxing out retirement contributions. Or you could send a little extra toward your principal each month without overcommitting.

Ready to Retire Smarter? Call LaTour Asset Management Today

Some clients want the emotional win of owning their home outright. Others prefer the flexibility that comes with keeping cash invested. Both are valid, so what matters most is that your decision fits within a clear, customized retirement plan. You deserve a plan that accounts for taxes, income, goals, and long-term peace of mind.

At LaTour Asset Management in Springfield, we help you get the full picture and move forward with confidence. Want help weighing the pros and cons of paying off your mortgage? We’re here for that. Call us today at (877) 888 – 5724 and start building a retirement strategy that fits you.