How Much Financial Stability Do You Get From Owning Your House Outright?
For a large segment of the population, YouTube videos and advice articles about home ownership and real estate purchases are purely aspirational. They can only dream of saving enough money for a down payment and qualifying for a home mortgage. You, a long-time homeowner, have a whole other set of problems. You bought your house long ago, and now it will only be a few more years before the mortgage is paid off. Perhaps you bought it as a starter home, planning to trade it in for something bigger and more expensive when you are more financially secure. Of course, like almost everyone, you have stayed in your starter home for a lot longer than you originally planned. Now that the mortgage is almost paid off, you are considering whether to sell it, buy a second home in addition to your original one, or simply let your starter home be your forever home. For advice about what your next move should be now that the mortgage on your starter home is almost paid off, contact a Bronx real estate attorney.
Keep It, Sell It, Borrow Against It
Buying a house is a long-term investment; for some people, it is the biggest one, or at least the most permanent one, that they ever make. If you have been making payments on your home mortgage for at least ten years and you are not underwater with home-related debt, you are in a better position than most. You would be surprised how many people quickly tank their home equity by taking out home equity loans and applying for cash out refinances.
As a standup comedian once said in perfect seriousness, being wealthy isn’t about having money; it is about having options. You can keep your house as a source of generational wealth, so that your adult children can live in it with you now or inherit it from you after you are gone. You, or your heirs after you, can rent out the house and generate income from it; it is easier to turn a profit from owning a rental property if the mortgage is paid off, so that you are not just trying to break even on the mortgage payment. If you are one of the lucky few with a feasible plan to downsize your lifestyle upon retirement by selling your house and buying or renting a smaller one in a less expensive location. You can also keep your house and take out a reverse mortgage to fund your retirement.
If You Have Been Paying Down Your Mortgage, It Makes Sense to Stay the Course Instead of Trying to Strike It Rich
If you have gotten far enough that you have made a dent in your home mortgage, stay the course. You are on a better path to a comfortable retirement than you would be selling your house and buying a new one for purposes of a financial upgrade.
Schedule a Confidential Consultation With a Bronx Real Estate Attorney
A real estate lawyer can help you buy a real estate property or be content with the one you have. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
msn.com/en-us/money/realestate/here-is-the-true-value-of-having-a-fully-paid-off-home-in-america-especially-when-you-re-about-to-enter-retirement/ar-AA1uUYd8?ocid=msedgntp&pc=ACTS&cvid=751a300c4ba04926a3ba92d5d2b7ac6a&ei=29
