Before you retire, should you pay off your mortgage?

It is always a better idea to pay off your mortgage loan before you get retired. You never know what is going to happen at your old age. If there is a burden of paying off your mortgage then it can be tough for you to handle any critical situation. So, be relaxed at your old age by paying it before you retire. It will also help you to take other decisions because after your retirement it is obvious that you will be in shortage of money. Here if there is no burden of paying mortgage loan then it will help you immensely.

You should also compare interest rates. The 30-year fixed-rate mortgage interest rate is 6.57%. It will be a wise decision to keep mortgage loan long if you can earn more than the interest rate you are paying for mortgage. You should pay off mortgage loan as quick as possible if you are not sure whether you can earn higher from the stock market.

"We don't know what the earnings are going to be in the market," says Vern Hayden, a certified financial planner and president of Hayden Financial Group in Westport, Conn. "The guaranteed return on your money is the interest you were paying" on the mortgage.

Read this article for more information.