Tuesday, August 7, 2012

Retire Mortgage Free in Lexington MA!

In working as a real estate agent in the Lexington Real Estate market for a number of years, I know that the number one thing on peoples’ minds when it comes to buying a home, is the monthly mortgage payment.  And it makes sense!  We all want to make sure that we can get as close to our dream home as possible while still living within our means.  But, have you ever considered that you could be mortgage free?

It seems that, apart from having a vast income at your disposal, not having a monthly house payment is nearly impossible.  For those looking to retire in our historic town of Lexington, being free from the concern of a mortgage would be the ultimate way to spend their post work years, but is it possible?

Whether you currently live in Lexington and are nearing retirement, or your goal is to finish up a job well done and retire in this quaint area; I thought I’d show you how to make a mortgage free retirement happen!  Take a look!

1. Make Extra Mortgage Payments- It may seem insignificant to tack on an extra $100 a month, but over time it can amount to major savings!  Let’s say you have a $200,000 mortgage at an interest rate of 6% on a 30 year mortgage.  Without taxes and insurance, that will amount to around $1,200 a month, which means you’ll be paying a little over $231,000 in interest.  But, paying an extra $100 a month can save almost $50,000 in interest and you can be done with the loan five and a half years early!

2. Refinance Your Mortgage- If you currently live in Lexington, refinancing your home could be one of the best ways to cut costs each month or switch to a shorter term loan.  Many people are considering refinancing due to the historically low interest rates we’ve seen over the past few years, which is great if your goal is to reduce monthly payments.

However, refinancing can also mean switching out your current 30-year mortgage to a 15-year loan.  While you will be paying a little more each month, you’ll find yourself mortgage free much sooner!

3. Downsize Your in Your Lexington Home- We all love to have our own space and a home that allows for hosting gatherings and guests.  But, do you need the same amount of space as you did earlier in life?  While you do want to account for friends and family that will want to come visit you in your Lexington home; you won’t need a lot of extra space such as a formal dining room or a formal living room.  Downsizing can allow you to find a less expensive home and, if you are selling your current home to relocate to historic Lexington MA,  you could potentially make an all cash offer!

My desire as a Lexington Real Estate agent is to guide you to help you achieve your real estate goals.  Whether retirement is quickly approaching, or it’s still a few years away, you can start now to implement these tips! 

If you have questions about buying a Lexington home for retirement or are curious to learn more about the Lexington Real Estate market; please let me know!  I’m here to answer any questions you have!

Theresa D'Antuono

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