Life Events

A Path to (True) Home Ownership

A home refinance loan can help shave years off your mortgage, so work now to make that dream of a debt-free retirement a reality.

Kallee Feuz Apr 23, 2018

Your vision of a picture-perfect retirement probably doesn’t include being strapped with a monthly mortgage payment. But for more than a third of homeowners ages 65-74, lingering mortgage debt is a reality, according to the Bureau of Labor Statistics.

Older Americans are carrying more mortgage debt — and more debt in general — than ever before, according to the Consumer Financial Protection Bureau. The agency said in a 2014 report that “rising mortgage debt is threatening the retirement security of millions of older Americans.”

Less home equity not only means less accumulated wealth in retirement, it also means greater risk of foreclosure — as seen during the recent financial crisis. From 2007 to 2011, foreclosure rates jumped from 0.25 to 2.55 percent for homeowners ages 65-74, and from 0.33 to 3.19 percent for those 75 and older, the CFPB reported.

More commonly, carrying a mortgage into your golden years — a time of when many people are on a fixed or reduced income — can strain your finances or even delay your retirement.

Envision a mortgage-free future

If you are staring down a seemingly endless road of mortgage debt, Zions Bank’s new Home Refinance Loan could put you on the fast track to a mortgage-free future.

A Zions Bank Home Refinance Loan lets you trade in your existing home loan for a short-term, 7- to 10-year mortgage loan with a low, fixed interest rate.

Shorter loan terms generally mean lower interest rates, so in addition to paying off your home, townhome or condo sooner, you could skip thousands of dollars in interest payments.

Save time and money with Zions Bank’s Home Refinance loan

With a Zions Bank Home Refinance Loan, you can save time and money during the refinance process. Loan features include:

  • Zero closing costs. Unlike a conventional mortgage, Zions Bank’s Home Refinance Loan doesn’t include closing costs.
  • Options for cash-out refinancing. Consider a cash-out option if you have needs such as home improvements or other expenses that can be financed as part of the loan.
  • Easy underwriting with minimal documentation required. Because these are not conventional mortgage loans, your most recent W-2 is sufficient in most cases, and tax returns are not required.
  • Multiple terms to fit your needs. Chose an accelerated 7- to 10-year term.
  • A 0.125 percent interest rate discount. If payments are deducted from a Zions Bank checking or savings account, enjoy the perk of a rate reduction.
  • Fast, local decision-making. As soon as your paperwork is in, the process can move swiftly through processing, underwriting and closing.

Look before you leap

Chipping away at mortgage debt can bring psychological and financial relief. But the decision to pay off your home loan at an accelerated pace should be made in the context of your overall financial profile.

In most cases, you’ll want to pay off higher-interest debts before you take on the mortgage. You’ll also want to make sure you have the liquidity necessary to cover life’s unknowns before allocating extra income toward house payments.

Let a Zions Bank Home Refinance Loan help you achieve your dream of a mortgage-free retirement.  Apply for a Home Refinance Loan at any Zions Bank location or by calling 1-800-727-8893 to apply by phone.

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