{"id":631141,"date":"2026-09-21T06:18:34","date_gmt":"2026-09-21T06:18:34","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/631141\/"},"modified":"2026-09-21T06:18:34","modified_gmt":"2026-09-21T06:18:34","slug":"paying-off-your-mortgage-before-retirement-could-be-your-ticket-to-financial-security-especially-in-trumps-economy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/631141\/","title":{"rendered":"Paying off your mortgage before retirement could be your ticket to financial security \u2014 especially in Trump\u2019s economy"},"content":{"rendered":"

\"U.S.<\/a> Photo by Brandon Bell \/ Getty Images <\/p>\n

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. <\/p>\n

When it comes to inflation, the latest numbers aren’t exactly reassuring. Consumer prices were up 3.4% in August from a year earlier, according to the U.S. Bureau of Labor Statistics, as gasoline prices jumped 3.9% during the same month (1). <\/p>\n

That’s all happening as President Donald Trump’s administration deals with tariffs, higher energy costs and ongoing geopolitical uncertainty. Meanwhile, interest rates remain a concern to anyone who needs to borrow money. <\/p>\n

Top Picks <\/p>\n

For people heading into retirement, all of that uncertainty can make one thing especially appealing: a monthly budget with fewer big bills to worry about. And for many homeowners, paying off the mortgage can go a long way toward creating that kind of breathing room. <\/p>\n

If you’re looking for a relatively mundane way to boost your financial security, paying off your home could be one option. <\/p>\n

Here’s how a paid-off property can help you in Trump’s economy. <\/p>\n

Shield against the cost of living <\/p>\n

The rising cost of living isn’t good for anyone, but it’s particularly hard on borrowers and retirees living on fixed incomes. <\/p>\n

Inflation is still running above the Federal Reserve’s 2% target (2), and higher fuel prices aren’t helping. At the same time, borrowing remains expensive, which can make taking on or refinancing a mortgage a tougher proposition. <\/p>\n

The average 30-year fixed mortgage rate hit 6.76% for the week of Sept. 10, according to Freddie Mac (3). That’s a long way from the rock-bottom rates some homeowners locked in during the pandemic. <\/p>\n

Simply put, if you’re looking to move to a new home, refinance your property or downsize, the prospect of higher mortgage rates might be a concern for you. <\/p>\n

If your move is unavoidable, trying to get the best rate possible is still worth the effort. <\/p>\n

Freddie Mac recommends shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible<\/a>. Even a small rate reduction can translate into significant savings over the life of a loan. <\/p>\n

To make this process easier, places like the Mortgage Research Center (MRC)<\/a> can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details \u2014 such as your zip code, property type, price range and annual income \u2014 you can view mortgage offers tailored to your needs<\/a> and shop with confidence. <\/p>\n

Story Continues <\/p>\n

Read More: Vanguard reveals what’s coming for U.S. stocks \u2014 and it could be bad news for this group of investors<\/a> <\/p>\n

Finding the right home insurance <\/p>\n

Paying off the mortgage doesn’t mean the house is suddenly free to own. Homeowners still have property taxes, maintenance costs and, importantly, home insurance to factor into the budget. <\/p>\n

That insurance can help cover the cost of repairing or rebuilding your home after a covered event, such as a fire or severe storm, while also providing liability protection. And that protection isn’t getting any cheaper. Insurify says the average annual home insurance premium was $2,808 for a policy with $300,000 in dwelling coverage as of Aug. 31 (4). <\/p>\n

However, by using a comparison platform like Insurify<\/a>, you can <\/a>instantly view quotes from top-rated providers<\/a> to ensure you aren’t paying a hidden “loyalty tax” to your current insurer. <\/p>\n

Just answer a few basic questions<\/a>, and Insurify will show you the most affordable deals in as little as 3 minutes. Not only is the process 100% free, but you could also save up to 15%<\/a> by bundling your car and home insurance. <\/p>\n

A few downsides <\/p>\n

Paying off your mortgage in retirement isn’t without its disadvantages. <\/p>\n

To start, this move is likely to lock up a lot of your cash in your property, which isn’t necessarily liquid. That means you can’t rely on the cash to fund your living expenses. <\/p>\n

But there are ways around this problem. For instance, you could easily tap into that liquidity through a home equity line of credit (HELOC), which is a revolving line of credit that uses your home’s equity as collateral, so you can borrow and repay funds \u2014 similar to a credit card. <\/p>\n

For those who want additional flexibility, AmeriSave<\/a> offers a HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states. <\/p>\n

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged just on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process<\/a>. <\/p>\n

Should you be investing your cash instead? <\/p>\n

There’s another downside if you already have a very low mortgage rate: Paying off the loan means putting more of your cash into the house, where it can’t be easily used to invest elsewhere. <\/p>\n

If your mortgage rate is particularly low, you may decide that money could potentially do more for you in investments such as stocks or bonds. That doesn’t automatically make keeping the mortgage the right choice, but it’s worth considering this tradeoff before putting a large chunk of your retirement savings into the house. <\/p>\n

Striking the right balance isn’t easy, but the good news is you don’t have to do it alone. <\/p>\n

Hiring a professional financial planner or tax expert can help you make the right decision on this crucial money move. <\/p>\n

For instance, if you have a portfolio of $250,000 or more, platforms like WiserAdvisor<\/a> can connect you with vetted professionals who specialize in this kind of planning. <\/p>\n

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you \u2014 for free \u2014 with up to three vetted, reputable advisors aligned with your specific needs. <\/p>\n

You can then schedule no-obligation consultations<\/a> with your matches to determine who is the best fit for your long-term goals. <\/p>\n

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties and specific financial results are not guaranteed. <\/p>\n

What To Read Next <\/p>\n

Get Warren Buffett’s best investing lessons, free. Join 250,000 readers getting Moneywise’s sharpest money reporting every week. Subscribe and we’ll send you our guide to the ideas that built Buffett’s fortune as a welcome gift.<\/a> <\/p>\n

Article sources <\/p>\n

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>. <\/p>\n

U.S. Bureau of Labor Statistics (1<\/a>); Board of Governors of the Federal Reserve System (2<\/a>); Freddie Mac (3<\/a>); Insurify (4<\/a>) <\/p>\n

This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"Photo by Brandon Bell \/ Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through…\n","protected":false},"author":2,"featured_media":631142,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[24869,72,8574,969,176,16140,61,60,3916,2416,174,175,267880,1611,1830],"class_list":["post-631141","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-bureau-of-labor-statistics","tag-business","tag-consumer-prices","tag-donald-trump","tag-finance","tag-freddie-mac","tag-ie","tag-ireland","tag-jeff-bezos","tag-mortgage-rates","tag-personal-finance","tag-personalfinance","tag-refinancing-a-mortgage","tag-retirement","tag-retirement-savings"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/631141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=631141"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/631141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/631142"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=631141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=631141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=631141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}