Suze Orman says pay off your mortgage by age 63
Given that year over year property appreciation in the double digits is no longer seen as a birthright,, many retirees and soon-to-be retirees are feeling cash-strapped and aren't sure about how to plan for their futures.
In this great interview with Brian Williams, personal finance queen Suze Orman opines that people who are planning to stay in their current homes for life should make paying off their mortgages by age 63 their top financial priority. Your mortgage is $1,500 per month, by paying it off quickly you effectively reduce your retirement expenses by $1,500 per month -- it's pretty hard to make that up with savings, after taxes.
Suze's right, in the current environment: with CDs and savings accounts paying under 3%, paying off a mortgage at 6% makes sense. If interest rates rise and more attractive conservative investments become available, this strategy will lose its appeal.