Many people may come to the end of paying their mortgage in later life. Once you have paid your mortgage, there are numerous avenues of what to do next. You could reserve the funds for your children’s inheritance, or you could reclaim money on the home.
Here are a few things to consider when you have finally paid off your mortgage.
The simplest option
The easiest thing to do is nothing. You have done the hard part and paid off your mortgage, so now you can enjoy living in the home mortgage-free. You will probably have a bit of extra money lying around for renovations and home improvements. Make your home the best it can be and adapt it to your new retirement life. You could turn any spare bedrooms in your office, home gym or meditation room. Have fun with your home, and make it work for you and your lifestyle.
Make money from the place
If you are travelling abroad for a few months, you could rent out your home while you are away. You will make some extra cash to fund your travels and expenses when you return. You could also create an Air BnB listing for your home. People could rent it for a few weeks at a time while you’re staying with family or travelling again.
Reclaim money on your home
It can be uncomfortable to rent out your family home. Fortunately, there are other ways to make money from your property. If you are over 55, you can apply for an equity release to give you access to the money that is stuck in your home’s equity. You can use this money to fund your everyday expenses or to start a small business in your retirement. It’s up to you!
Put away the funds
You will have access to more cash now you’re not making monthly mortgage payments. Instead of spending this extra money, direct the funds to a savings account instead. You won’t notice a difference in your budgeting, and your savings will grow considerably. You can use these savings for home renovations, retirement funds or a luxury holiday.
Sell up
The final option is to sell your property and downsize. You can use the money from the sale to move into a smaller place. Perhaps your children have grown up and moved out, and the property is just too big for you and your partner. Find a cozy place for the two of you to settle into and keep any of the money leftover.
If you’re feeling a bit more adventurous, you could sell up and start a full renovation on another property. Use the money to fund the renovation and build your dream home.
It all depends on your current financial situation and future plans.
