Why a fully paid-off home in retirement is extremely valuable — especially in Trump’s economy

This concern is reflected in the polls, as Trump’s approval rating on the economy dipped to a record-low 29%, with 63% disapproval, according to a YouGov/The Economist poll published in June. A whopping 57% of respondents to that survey also said that they expect the economy to get worse.

If you’re part of that pessimistic cohort, there is one relatively mundane way to boost your financial security: paying off your home. 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.

High inflation can lead to higher interest rates as a way to cool the economy and Dallas Fed President Lorie Logan recently raised this possibility: “I am increasingly concerned that higher interest rates could be necessary later this year,” she said in a recent speech, according to CNBC.

Simply put, if you’re looking to move to a new home, refinance your property or downsize, the prospect of higher mortgage rates should concern 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.

But if you’re happy to stay where you are, paying off your mortgage could help you eliminate a major line item on your annual budget.

It also helps you protect your wealth, as real estate is more likely to retain its value when inflation and volatility are rising. Owning your home free and clear gives you the sense of security and predictability you need to navigate your retirement with confidence.

However, paying off your mortgage in retirement may also have some downsides.

A few downsides

Paying off your mortgage in retirement isn’t without its disadvantages.

Firstly, the move is likely to lock up a lot of your cash in your property, which isn’t necessarily liquid. That means you can’t rely on the cash to fund your living expenses.

To be fair, you could easily tap into liquidity through a Home Equity Line of Credit (HELOC).

It’s a revolving line of credit that uses your home’s equity as collateral, so you can borrow and repay funds as needed — similar to a credit card.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan upfront.

You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

There’s also a chance that your mortgage is relatively cheap.

As of June, 2026, the average 30-year fixed mortgage rate is 6.5%, according to the Federal Reserve, but the rate was as low as 2.8% in 2021. If you managed to lock in a 30-year mortgage at roughly 3% or less, there is an argument to be made about opportunity costs and the fact that your cash can earn a higher return in stocks or bonds instead.

Striking the right balance isn’t easy, but the good news is you don’t have to do it alone.

Hiring a professional financial planner or tax expert can help you make the right decision on this crucial money move.