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3 Ways to Retire Without a Mortgage

Whether you're 35 or 65, the prospect of retiring without a mortgage is an attractive one. No more monthly mortgage payments means extra money to spend on having fun in retirement. But how? We've lined up three approaches that fit a variety of retirement scenarios. #1 Make Extra Mortgage Payments Pretty straightforward, right? Put in more money now. You may need to scrimp to pull it off, but the potential savings are big. Raise your payment by, say, $100 a month, and you could pay off the mortgage years earlier -- and avoid paying tens of thousands of dollars in interest. #2 Refinance Your Mortgage You may have already refinanced to get a lower payment. But to make this work for a mortgage-free retirement, you've got to go shorter on the loan term. This could mean higher payments -- but you'll be free and clear earlier. #3 Get a Roomate Are your kids out of the house? Do you have extra space over the garage? Rent it out and put the income to work paying down your mortgage. An extra $250 a month toward a $150,000, 30-year mortgage at 5% will erase the debt 12 years early.

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