My Home Should Be Paid Off Well Before Retirement. Here's Why I Have No Plans to Keep It at That Point

When my husband and I first signed our mortgage, we took out a 30-year loan. Mortgage rates were fairly low at the time, but we felt more comfortable sticking to a 30-year loan to secure lower monthly payments.

But when mortgage rates plunged in 2020, we took the opportunity to refinance. And we weren't the only ones to go this route. About 14 million home loans were refinanced between the second quarter of 2020 and the fourth quarter of 2021, according to the New York Federal Reserve.

But we didn't simply refinance to a lower rate. We also swapped our 30-year loan for a 15-year loan. And while our mortgage lender did warn that we'd be looking at higher monthly payments because of that, we also set ourselves up to save a lot of money on interest.

Meanwhile, at this point, I only have 12 years left on my mortgage. So I expect my home to be paid off in full well ahead of retirement. But I also have no intention of keeping my home once my career is wrapped up. Here's why.

It's super expensive

Because my husband and I put a 50% down payment on our home, we've never had a particularly expensive mortgage. Throw in the ultra-low rate we currently have on our loan, and our monthly mortgage payments themselves are quite manageable. Rather, it's the peripheral costs of homeownership, like property taxes, maintenance, and repairs, that eat up an uncomfortably large chunk of our money.

Not only is my property tax bill super high, but we're constantly having to sink money into home repairs just to keep the place running. And we easily spend thousands of dollars a year on routine, predictable maintenance -- things like lawn care and gutter cleanings.

Meanwhile, it's common to cut back on spending once retirement arrives. And so I don't see why I'd hang onto such an expensive property at a time when my budget may be more limited. Even if I'm not looking at mortgage payments in retirement, the cost of keeping this house could still be astronomical.

It's larger than what I need

My home is hardly a mansion, but it does have five bedrooms and bathrooms. Since we're a family of five, that's not so unreasonable -- it allows us to spread out and it gives me a room to use as my home office.

But I hope to be an empty nester in retirement because I want my kids to be independent and venture out on their own. And so I really don't see the point in keeping such a large house if it's just me, my husband, and, ideally, a dog or seven.

Some people work hard to pay off their homes ahead of retirement so they can live mortgage-free once their careers come to a close. I'm on track to meet that goal, but that doesn't mean I intend to stay put. What I'd love to be able to do is sell my paid-off home and buy a less expensive one outright in an area where the property taxes aren't so high. And if I end up with an extra chunk of money I can spend on leisure, even better.