So you’ve paid off your mortgage. Congratulations! That’s a major milestone, one that is definitely worth celebrating! Paying off your mortgage removes a significant financial burden. There are still a few things you’ll need to think about or at least have on your radar going forward though.
Other Monthly Costs
You made your mortgage payment every month without fail. While you’ve finished making those payments, there are still some other monthly costs you’ll need to deal with. The typical household utilities need to be paid every month for you to live the comfortable life you’re accustomed to.
You may also have other monthly bills that allow you to maintain your lifestyle such as phone bills and any streaming services you subscribe to. While not necessarily directly tied to your house, paying these bills will impact the experience you have while living there.
Home maintenance isn’t going to stop being necessary just because you’ve paid off your mortgage. If anything, it will be more necessary than ever simply because the home has gotten older and more worn over the years. That can be tough if you’re about to retire.
Many retirees find it more difficult to tackle maintenance and repair tasks than they did when they were younger. If you’re concerned about keeping up with home maintenance, consider selling your house and building a custom home. Building a custom home means you don’t have to deal with repairs as quickly. Now that you’ve paid off your mortgage, you have an entire house’s worth of equity to liquidate and use to finance a custom home.
Homeowners Insurance and Property Taxes
Mortgage lenders typically require homeowners to carry home insurance. Now that you’ve paid off your mortgage, you could technically cancel your policy and save even more money every month. That’s not a good idea though. Your homeowner's insurance offers financial protection that can save you a lot of trouble if something goes wrong. You’ll need to keep up on property taxes as well. Many homeowners have their insurance and property taxes lumped into their monthly mortgage payments. If you were one of them, you’ll need to remember to make those payments on your own now.
Paying off your mortgage is a major step, but it isn’t the end of spending money on your house. There will still be plenty of expenses to manage as you move forward. That said, paying for them should be a little more comfortable than it was now that you don’t have a mortgage payment to put your money toward.
Did you enjoy reading this article? Here’s more to read: How to Enjoy Your Outdoor Space in Retirement