Isn't staying in my paid-off Colorado Springs home basically free?

A paid-off house is protection, not savings

I'm not here to tell you that paying off your house was a mistake. On a fixed income, a home with no payment is a real financial advantage, not just a feeling. When income drops, there's no mortgage coming due.

But a paid-off house isn't a savings account. Savings is money you can use. The house doesn't send you a check, pay the property taxes, or replace the water heater when it goes out. Every month it takes money out of your pocket and puts nothing back. Having no mortgage protects you from one risk, a monthly payment. It doesn't protect you from being equity rich and cash poor.

What staying still costs in Colorado Springs

• Property taxes. They don't go away when the mortgage does. See how property taxes work in El Paso County. If you're 65 or older, Colorado's senior property tax exemption may lower the bill if you qualify, and the state's Property Tax Deferral Program offers a low-interest loan to pay the taxes, applied for each year through the county treasurer. It's a loan, not a reduction: it's recorded as a lien and repaid when the home is sold.
• Homeowners insurance. Hail is a large part of what drives premiums in El Paso County, and some policies now carry a percentage deductible for wind and hail that can mean paying thousands out of pocket on a roof claim. See why homeowners insurance varies between Colorado Springs houses.
• Utilities and upkeep. A larger home costs more to heat, cool, and maintain, whether or not you use every room.
• Big systems. The roof, furnace, and water heater eventually need replacing. Knowing their ages and planning replacements lets you choose the timing instead of having them come due all at once.
• Your time, energy, and ability. I call this the "wealth tax" of staying. Owning a house takes mental bandwidth, knowledge, physical capability, and the money to handle projects. That cost grows as a house ages and as we do.

The equity isn't working for you

The equity in your home is real, but you can't spend it without making a decision first. In my video on being equity rich, cash poor, I describe four directions, not the two most people hear about:

1. Sell it and turn the equity into money you can use.
2. Borrow against it, with a home equity line, a cash-out refinance, or a reverse mortgage.
3. Make it produce, such as renting a room.
4. Redesign around it, modifying the home so you can stay or changing who lives with you. See the home modifications that make aging in place realistic.

Be careful with the borrowing option, because it's the one that gets sold the hardest. When you borrow against a paid-off house, you turn something nobody can take from you into a monthly payment with a foreclosure clause, often on an income that isn't growing. Sometimes that's still the right move. It should be a purposeful decision, not a default because someone made a good pitch. For a reverse mortgage, federal rules require counseling with a HUD-approved counselor first.

Each direction also has a condition. Borrowing needs income. Selling needs a market and somewhere to go. Making the house produce needs you to be well enough to manage it. Redesigning needs money you haven't spent yet.

Start with why you're thinking about moving

Before comparing costs, I ask why you're considering a move in the first place, and I keep asking. I use the "five whys":

• Why do you want to move? Because I want to downsize.
• Why do you want to downsize? Because I don't like dealing with the yard anymore.
• Why not? Because it hurts to push the lawnmower.
• Why does it hurt? It's my knees.

(A hypothetical example.) Now you know the real problem. If it's the yard, you can outsource that. But if the house has stairs, wasn't built for one-level living, and a health concern makes it harder to live there, and you can't solve that and stay, then that's your underlying reason for moving. It has a cost that isn't financial.

The answer to the five whys often tells you whether you have a problem you can solve in place, such as hiring help or making a modification, or one that the house itself can't solve.

Waiting has a cost, too

A delayed decision is still a decision. Options narrow over time without anyone announcing it.

I've worked with two widows in similar situations: a house with a lot of equity and very little cash. One called in the first year after her husband passed, and she still had all four directions open to her. The other waited five years. By the time she called, her savings were spent and her income couldn't carry a loan, so selling was the only option left. She didn't do anything foolish. She just didn't ask anyone, and the decision got made for her.

How to decide

• If you can afford the ongoing costs and the house still fits how you live, staying may be exactly right. Plan for the big systems and any modifications.
• If the reason you're considering a move is something you can outsource or modify, solve that first and see if staying works.
• If the house can't be made to fit your needs, or the costs are eating into money you'll need later, it's worth comparing staying with moving side by side. See whether downsizing actually saves money and whether to downsize or stay.
• If you're considering borrowing against the house, talk with a financial planner, and for a reverse mortgage a HUD-approved counselor, before signing anything.

What could change the answer

• Health. A change in health can turn a manageable house into one that doesn't work.
• Insurance and tax changes. Premiums, deductibles, and tax rules change; review them each year.
• Major repairs. A roof or furnace replacement can change the math quickly.
• Your plans. Moving closer to family, or needing more care, changes what the house needs to do.

When to talk with a professional

• A financial planner or financial coach to see how the home fits your cash flow and long-term plans.
• A CPA about taxes if you sell or borrow.
• An elder law attorney if long-term care or Medicaid planning may be involved.
• A HUD-approved counselor before any reverse mortgage.
• The El Paso County Treasurer and Assessor about the deferral program and the senior exemption.
• A real estate professional to compare the cost of staying with the cost of moving.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

Sources

• Colorado Department of the Treasury, Property Tax Deferral Program: https://treasury.colorado.gov/property-tax-deferral-program-v2
• Colorado Department of the Treasury, "Colorado Counties Accepting Applications for Colorado Property Tax Deferral Program" (January 12, 2026): https://treasury.colorado.gov/press-release/colorado-counties-accepting-applications-for-colorado-property-tax-deferral-program
• Weldon Hobbs, Life & Real Estate Without Regret, "Equity Rich, Cash Poor: The Real Estate Mistake You Can't Afford": https://www.youtube.com/watch?v=5qp-DZSXaAA