A few years ago I took savings and sold stock to pay off the house. When I was 59 I was laid off work, so I decided it was time to retire.
I was able to retire simply because the house was paid off. Home like mine rent for around $1500 a month, so I figure I earn $1500 a month tax free.
Because of prop 13 my taxes work out to about $100 a month, something I can easily afford.
My advise is and always will be, pay off your house if you can. You can always borrow or sell it if need be.
I was recently furloughed and am waiting to see if I will still have a job in the coming months, so believe me, it is tempting. But we just refinance at 3.24% and so feel like we are getting almost free money here.
“Home like mine rent for around $1500 a month, so I figure I earn $1500 a month tax free.”
Remember when Clinton was toying with the idea of proposing the concept of “imputed income” for those who owned their homes? I did, immediately bought more guns and ammo.