Should You Sell Your Home When You’ve Paid off Your Mortgage?

Once your mortgage is paid off, you likely feel a sense of relief. You no longer have to make that massive payment. However, as you’re thinking about the end of this mortgage, you’re wondering if selling your house is in the future. The decision depends upon a variety of factors.

New Home Plans
Once you have eliminated some debt from your life, you probably don’t want to take on a prodigious amount more. Therefore, consider how much your new place will cost. For example, you may want to downsize from a house to a condo or an apartment. In that case, you would likely earn money from the sale. You can use a mortgage calculator to estimate what your new payments might be.

Ability to Stay
You also have to assess your ability to stay in the house. Sometimes, as people age, they struggle to walk up and down the stairs. When the only bedrooms and bathrooms are on the second floor, moving might be the best option. Also, paying off your mortgage might coincide with retiring. Some individuals do not have enough money upon retiring to pay the taxes and other bills associated with the house. Taking your future plans and abilities into consideration helps you to make the decision.

Financial Situation
Assessing your financial situation is important as well. Take into account whether you would make a profit. If you are planning to buy a more expensive house, then you will need to take out another mortgage. Since it has likely been awhile since you were approved for a mortgage, you probably need to speak with a specialist. Opting for a pre-approval is a smart way to see where you stand.

Current Market
You need to think about buying a new home, but you also have to consider whether or not your current property will sell. Take a look at the market to see what similar houses are selling for in your neighborhood. Hiring an appraiser is a good idea as well. Since you have just completed the financial goal of paying off your house, you don’t want to end up losing money if you sell. You also may not want to endure the hassle of having your house on the market for a long time.

Retirement Plans
In the event that you are near the point of retirement, you probably want to think about where you want to spend those years. If you have always dreamed of purchasing a home in wine country or renting a condo on the beach, now may be the time to pursue those dreams.

Whether or not you should put your house up for sale is a personal decision based on a variety of factors.

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