"The borrower is the slave of the lender" (Proverbs 22:7, ESV). Many Christian retirees feel that verse in their bones and want to walk into retirement owing nothing.
It is a worthy goal. It is also a real financial decision with tradeoffs, and Texas adds a few twists. Here are the questions to weigh. This article is general education, not a recommendation to pay off or keep a mortgage.
A paid-off home lowers your fixed costs. Lower fixed costs can mean smaller withdrawals from savings each month, and less pressure in a down market. For some couples, the emotional freedom is worth more than any spreadsheet can show.
Money in your house is hard to spend. You generally cannot get it back without selling or borrowing. If a large share of your savings goes into a payoff, you may have less cushion for a roof, a car, or a health event.
If the payoff money would come from a traditional IRA or 401(k), the withdrawal is generally taxable income. One large withdrawal can:
On the other side, the mortgage interest deduction only helps if you itemize. With a 2026 standard deduction of $32,200 for married couples, many retirees no longer benefit from it. (Source: same IRS Rev. Proc.)
"Owe no one anything, except to love each other" (Romans 13:8, ESV). Scripture warns about debt, and it also commends wisdom and counting the cost. For some households, paying off the house is the faithful step. For others, keeping liquidity is. Either can be done with a clear conscience when the decision is prayed over and the numbers are understood.
To see how a payoff would change your retirement paycheck, take the free Retirement Paycheck Readiness Scorecard at scorecard.matt25capital.com, or call our office at 620-670-9455.
I'm Will Snodgrass, CFP®, with Matt25 Capital, serving Christian pre-retirees and retirees from our office in The Woodlands, Texas, and by video with clients nationwide. Advisory services are available only where Will is properly registered or exempt from registration.
At Matt25 Capital, we help Christian families navigate complex financial decisions with wisdom, integrity, and faith-centered guidance. Schedule a complimentary consultation today.
Schedule a ConsultationThe opinions voiced in this material are for general information and educational purposes only and are not intended to provide specific advice or recommendations for any individual. Nothing in this blog constitutes investment, legal, or tax advice. Please consult with a qualified professional before making any financial decisions. Past performance is not indicative of future results. All investing involves risk, including the potential loss of principal. Any hypothetical examples used are for illustrative purposes only and do not represent actual client results. Confirm current IRS, Social Security Administration, and plan rules for your situation. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network®. Certified Financial Planner Board of Standards Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements. Matt25 Capital is a separate entity from Commonwealth Financial Network®.
This material does not constitute tax or legal advice. Property tax exemptions and limitations are administered by local appraisal districts and taxing units, depend on eligibility, and are subject to change; contact your appraisal district. Withdrawals from tax-deferred accounts are generally taxable and may be subject to an additional 10% federal tax if taken before age 59½.