Mortgages With Short Terms Attract Boomers
Retirement plans and paying off the mortgage have traditionally gone hand-in-hand as people approaching retirement anticipate eliminating a payment that typically claims the largest single chunk out of the monthly budget.
That idea isn’t dead, but it has taken a little adjustment as boomers approach retirement in economically tough times. The good news is many are able to pay off their mortgages more quickly as expenses for raising children are gone, discretionary income has risen and rates are at record lows. However, members nearing retirement saw their stock portfolios shrivel, leaving them with fewer liquid assets to rely on when they wave goodbye to their co-workers.
For every year less than 10 years, CitizensFirst shaves 5 basis points off the interest rate. For every year over 10, up to12 years, five basis points are added.
“So if they decide to take an eight-year fixed-rate mortgage they would pay 2.75%,” Bucksnes said.