First Person: Why Generation X Needs to Be Mortgage Free | South Salem NY Homes

According to some headlines, Generation X has the most financial stress compared to any other generation. Many of us bought homes during the housing bubble. We are sending our children to college at a time when private college tuition costs as much as a house (not a house payment). In order to feel less stressed financially, I have made paying off my mortgage my No. 1 goal. So many experts scoff at the idea of putting extra money toward a mortgage when interest rates are so low. I have a mortgage rate of 2.75 percent. Because my interest rate is so low, I don’t usually have enough mortgage interest to make it worth my while to itemize my deductions. Therefore, I don’t deduct my mortgage interest. According to a recent article by The Street, people who are 35 to 44 have the most financial worries. A Pew study shows Generation X lost an average of $33,000 per person after the Great Recession. Although I’m dealing with stagnant wages, layoffs in my family and high college costs, I know owning my home outright will provide economic security for the rest of our lives.

Owning instead of renting

If I could come out ahead even though I bought a home during the top of the housing bubble, I am confident my Gen-X peers will come out ahead by buying a home at this time. Even though real estate prices are not at the bottom, it’s still more affordable to buy now than it was during the housing bubble. We pay just $900 a month to own our home, but renting a similar home would cost $1,300. When we retire, we will just have to pay property taxes as well as optional home owner’s insurance.

http://finance.yahoo.com/news/first-person-why-generation-x-needs-mortgage-free-184800194–finance.html