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When it comes to inflation, the latest numbers aren't exactly reassuring. Consumer prices were up 3.4% in August from a year earlier, according to the U.S. Bureau of Labor Statistics, as gasoline prices jumped 3.9% during the same month (1).
That's all happening as President Donald Trump's administration deals with tariffs, higher energy costs and ongoing geopolitical uncertainty. Meanwhile, interest rates remain a concern to anyone who needs to borrow money.
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For people heading into retirement, all of that uncertainty can make one thing especially appealing: a monthly budget with fewer big bills to worry about. And for many homeowners, paying off the mortgage can go a long way toward creating that kind of breathing room.
If you're looking for a relatively mundane way to boost your financial security, paying off your home could be one option.
Here's how a paid-off property can help you in Trump's economy.
Shield against the cost of living
The rising cost of living isn't good for anyone, but it's particularly hard on borrowers and retirees living on fixed incomes.
Inflation is still running above the Federal Reserve's 2% target (2), and higher fuel prices aren't helping. At the same time, borrowing remains expensive, which can make taking on or refinancing a mortgage a tougher proposition.
The average 30-year fixed mortgage rate hit 6.76% for the week of Sept. 10, according to Freddie Mac (3). That's a long way from the rock-bottom rates some homeowners locked in during the pandemic.
Simply put, if you're looking to move to a new home, refinance your property or downsize, the prospect of higher mortgage rates might be a concern for you.
If your move is unavoidable, trying to get the best rate possible is still worth the effort.
Freddie Mac recommends shopping around, obtaining quotes from three to five lenders to secure the best possible mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan.
To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.
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