Did you make a New Year’s resolution to turn over a new leaf and improve your health in 2014?
Don’t forget about your financial health! How about a resolution you can make and keep? Retire mortgage free.
Here’s the easiest way to do it – increase your mortgage payments.
Sound simple enough doesn’t it? But so many haven’t done it. Look at these scary retirement statistics:
- 43% of 55 year olds say they haven’t saved enough for retirement.
- 50% of Canadians believe they’ll run out of money within 10 years of retiring.
- 1 in 4 retirees bear the load of a mortgage.
- 51% of today’s borrowers expect to carry a mortgage into retirement.
It doesn’t take much to achieve the ultimate goal of retiring mortgage free. A homeowner with 20 years left on a mortgage at an interest rate of 3.49% will be able to burn their mortgage:
- 3.6 years sooner by increasing their annual payment by 2%
- 5.3 years sooner by increasing their annual payment by 3.5%
- 6.7 years sooner by increasing their annual payment by 5%
Remember this formula: every extra $1 of principal that you pay down today saves a minimum of $1 in interest over the typical duration of a mortgage.
Own your home free and clear at retirement by voluntarily raising your mortgage payments today! For more intelligent ways to improve your financial health contact Tracy Irwin now!
