An alternative approach to consider involves “swapping” your forward mortgage for a reverse mortgage, then continuing to make the same payment you had been making on the existing mortgage. In approximately the same time as would have been true on your existing mortgage (minus the accelerated payment plan), you will have the mortgage balance paid off.
The difference? With a reverse, every payment you make will go into growing a line of credit capable of producing tax free withdrawals when needed in future years (without you ever needing to re-establish credit or qualify for a new loan).
Gearing up for retirement by “paying ahead” is a noble resolution, but, over your retirement years, there might be greater potential for financial flexibility if you pay ahead in reverse!
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.