"Paying off your mortgage is an important psychological milestone for any homeowner, but is it really worth sacrificing your retirement fund to get there?"
"For most people, a mortgage represents the single largest liability that they'll take on in their lives. It is their largest recurring expense and, over the life of the mortgage, homeowners will end up spending hundreds of thousands of euros worth of interest on the money that they borrowed to purchase their home."
"Naturally, as a result, there's an inclination to want the mortgage to be paid off as soon as possible."
Paying off a mortgage is an important psychological milestone for many homeowners. Sacrificing retirement savings to eliminate a mortgage raises the question of whether the trade-off is financially sensible. For most people, a mortgage is the single largest liability and the largest recurring expense. Over the life of a mortgage, homeowners can end up spending hundreds of thousands of euros in interest on borrowed money. That heavy interest burden creates a strong inclination to accelerate repayment. Homeowners face a choice between emotional relief from being mortgage-free and preserving retirement funds that support long-term financial security.
Read at Independent
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