My payments aren't large. Actually before I purchased this house I lived in a two bedroom duplex that was around 650 sq feet and the payments on this house are actually $50.00 a month cheaper (not counting taxes and insurance).
Considering that I will be sixty-six in November, one would think it would be a good idea to be debt free during retirement and I suppose it would be. Given the fact that my income is social security plus an amount from my retirement plan that together equals exactly what I made before I retired,m I know exactly how much my monthly income is. If I took a good portion of that and paid my home off, I would be left with no reserve and only social security as an income. What would happen if I had a sudden large debt to pay? I'd have to borrow money.
If I died, I would have no one to leave my house too. The best that could be done is to sell the place and divide the proceeds. It's a lot easier to divide the bank account than it is to sell the house and then divide the proceeds.
Actually as time moves forward, the actually cost of this house gets to be a smaller portion of my income. For example, when my parents purchased their home I'm not even sure what the minimum wage was, if there was even one. I do know after I graduated high school it was set at $1.10 per hour. At minimum wage, my father would have had to work 81 hours to make his house payment. At minimum wage I would only have to work 71 hours a week to pay for this place. If the rate of inflation is the same for the next twenty years, then I would only have to work 17 hours at minimum wage to pay for this house.
The part of my income that would go to paying for this house would be minuscule so why worry about paying it off.
I know the portion of my savings that I take out each month will shrink in the value of its purchasing power but I'm making enough interest that it is growing at a rate of 2 1/2 times the rate of inflation.
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