Many people spend years looking forward to retirement. For most, it's that time of life when they start enjoying the rewards that come from years of working hard. Part of planning for that season of life means deciding which home you'll live in and where that home will be located. There are several ways to get prepared for retirement and there are ways to use a mortgage to facilitate your retirement goals.
Plan for Your Future
When you start planning early for retirement, you increase the likelihood of finding your ideal retirement location and being able to determine all of the amenities you want in your home. If you're prepared to buy your retirement home before you're ready to retire, you can buy a house when prices are low. If you wait to buy your dream home, it may be out of your price range by the time you're ready to buy. Also, when you purchase a home early, you can have it paid off before your golden years.
If you're at least 62 years old, you may be eligible for a Reverse Mortgage, to either refinance or purchase your retirement home. As a refinance, this loan uses a portion of your home's equity as a collateral, giving you the freedom to pull out needed cash without incurring monthly expenses. When a Reverse Mortgage is used to buy a home, monthly mortgage payments are not required, but the borrower must qualify to pay required taxes, insurance, or HOA if applicable, and the borrower must be able to maintain the home.
Mortgages for Retirement
There are many types of mortgages available that may be an ideal option for retirement. Each loan has different potential advantages for each individual situation. Working with a mortgage specialist can help you identify which option is best and so that you can find a way to finance your retirement home.