Elderly couple buy a home

The Best Ways to Retire Without a Mortgage on Your Home

Whether you’re preparing to take early retirement or planning to ride off into the sunset during your Golden Years, you’ve likely thought about how nice it would be to enter into this stage of your life without having to pay a mortgage. Without those monthly payments to your home lender, you’d then have additional finances that could be used for having fun after working so hard for all of those years. Here are some of the best ways to retire without a mortgage, and as always, please consult your personal PERL mortgage lender if you have any questions.

Make extra payments

If you’ve added additional funds to your monthly premium through the years, you can expect to save thousands of dollars on interest and to reduce the time it takes to repay your mortgage. One of the best ways to do this is to trim your household expenses, and then to put those savings toward your mortgage. Great ideas include changing incandescent light bulbs to LEDs and switching to a programmable thermostat. You also can put financial windfalls from an inheritance, tax refund, yard sale, etc., toward your mortgage.


One of the best ways to reduce the amount you owe on your home loan is by refinancing your mortgage to a lower rate for an equal or longer length of time. This method translates into paying less monthly, which means less strain on your bank account, but you likely will need to switch to a shorter-term loan to achieve a retirement free of mortgage payments.


When you’re planning on retiring and enjoying all that life has to offer, you probably don’t need a huge home with a formal living room, separate dining room and two spare bedrooms. That’s where downsizing to a smaller home comes into play. You can choose to stay in the same community near your friends and family, and you also can check out alternatives to a traditional residence such as condos, townhomes, houseboats, RVs or even tiny homes. You might even be able to use the equity from your former home to pay cash for a new, smaller property…doing away with your mortgage altogether.


If you are having trouble finding the ideal place to retire in your hometown, try branching out to a less-expensive retirement area that offers plentiful activities side by side with affordable real estate. You might have to make some sacrifices when it comes to being in a familiar locale, but you’ll make up for it financially in the long run … and you might not even have to take out a new mortgage. You should consider taxes in your new location, however, as some areas will enable you to pay less for a home and to enjoy lower living expenses.

And as always, don’t hesitate to call your personal PERL loan officer if you have any questions at all.