Financial experts recommend owning your home "free and clear" before retirement, if possible. This is especially important if a drop in income after leaving full-time work is expected. Otherwise, housing costs will consume a large portion of post-retirement income, which can cause financial stress.
To retire mortgage-free, develop a plan. One strategy is to refinance your mortgage with a shorter (e.g., 10-year or 15-year) loan while you are currently working so that the final payment ends when you're ready to retire. Another way to pay off your mortgage before retirement is to use a mortgage acceleration strategy such as pre-paying principal or making biweekly payments equal to making 13 monthly payments, instead of 12, per year.
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