Over 3 in 4 mortgagors feel their mortgages are impacting their ability to save. The feeling is too many people choose mortgage payments over retirement savings.
A survey by BankRate.com suggests while homeownership is a goal for many Americans, it can create financial issues not only for retirement but also in other areas, if not managed correctly. “Big mortgage payments take a bite out of your monthly income but are also a major obstacle to saving for retirement, emergencies, or other financial goals,” says Greg McBride, CFA, Bankrate chief financial analyst.
Some 77 percent of mortgage holders overall say that their mortgage negatively impacts their ability to save for retirement, and the numbers fall in a tight band regardless of income:
- About 80 percent of those making less than $30,000 reported a negative effect
- Around 79 percent of those making between $30,000 and $49,999 reported a negative effect
- Some 80 percent of those making between $50,000 and $79,999 reported a negative effect
- About 76 percent of those making more than $80,000 reported a negative effect
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