How Much Am I Losing By Not Carrying A Mortgage in Retirement
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Optimize Your Retirement - How Much Money Am I Losing By Not Carrying A Mortgage In Retirement
1\$9,084\$727
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2\$18,895\$1,512
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AssumptionsInputsExplanation3\$29,491\$2,359
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Current Equity In Home \$ 500,000 4\$40,934\$3,275
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Current Home Value \$ 500,000 5\$53,293\$4,263
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Cash-out Amount \$ 400,000
Great! This amount is below the maximum of 80% of your home value.
6\$66,640\$5,331
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Refinance Rate4%Interest Rate7\$81,055\$6,484
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Refinance Term in Years30Loan Term8\$96,624\$7,730
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Expected Portfolio Return8%
Percentage return expected on your portfolio
9\$113,438\$9,075
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10\$131,597\$10,528
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CalculationsOutputs11\$151,209\$12,097
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Refinance Monthly Payment \$ 1,910
Monthly new mortgage payment - principal and interest
0.011044993382.31349801512\$172,389\$13,791
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Refinance Annualized Payment \$ 22,916
Annual new mortgage payment - principal and interest
13\$195,265\$15,621
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Annual Income If Invested \$ 32,000
Assumes you invested the entire refinanced amount at the expected portfolio return
14\$219,970\$17,598
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Amount Lost Annually If Not Refinanced
\$ 9,084
Assumes you pay the mortgage with investment income
15\$246,652\$19,732
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Amount Lost Over 30 Years \$ 1,029,072
Assumes you keep investing the annual amount in cell B15 and earn the rate in cell B9
16\$275,468\$22,037
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17\$306,589\$24,527
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Resources18\$340,200\$27,216
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Personal CapitalThe first step in securing your financial future is to sign up with Personal Capital. It's a completely free tool that I recommend to everyone.19\$376,501\$30,120
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LendingTreeI believe that retirees SHOULD carry a mortgage in retirement to optimize their finances. Make banks compete for your business so that you can get the best rate. 20\$415,705\$33,256
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21\$458,045\$36,644
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22\$503,773\$40,302
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For more information, you can email me at matt@optimizeyourretirement.com or see the associated post: 23\$553,159\$44,253
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24\$606,495\$48,520
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http://optimizeyourretirement.com/carrying-a-mortgage-in-retirement
25\$664,099\$53,128
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26\$726,311\$58,105
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27\$793,500\$63,480
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28\$866,064\$69,285
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29\$944,433\$75,555
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30\$1,029,072\$82,326
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