While we were working, we only had mortgage debt for 60% of the original value of our home. We didn't use debt to increase our lifestyle, e.g. vacations, cars, etc. We tried hard to live below our means at about 80% of our take home pay and saved the rest.
About 18 months after retiring, we paid off our mortgage and became completely debt free. So debt was no longer contributing to any our lifestyle including the house. Not having any debt has been extremely helpful during retirement, especially during the Great Recession. Our monthly expenses were reduced by 24% because we didn't have a mortgage.
My only regret is that we didn't pay off the mortgage sooner in early 2008, as my spouse wanted to do. The stock investments sold would have been at a higher price and part of our savings would have avoided the bear market of 08/09.
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This is not financial advice. Please consult a professional advisor.
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