Source: Total Mortgage —
Mortgage rates are on the rise, but that doesn’t mean retirees can’t take advantage of mortgage options for seniors, allowing them to downsize, purchase a second property, or take advantage of their home equity to pay off debt or make home improvements.
While there are plenty of senior mortgages, it’s important to consider your financial situation.
Here’s what you need to know about senior home loans.
Are There Mortgage Options for Seniors?
Traditionally, we’ve been told to pay off our mortgages and minimize our debt before we retire. However, retirees should keep in mind that many reasons may warrant their straying from this conventional wisdom.
Here are some of the most popular reasons for senior mortgages:
- Refinancing to lower monthly payments due to reduced income
- A large amount of built-up equity and little retirement savings
- A large amount of debt but no income to pay it off
- Downsizing to a smaller home
- Buying a vacation home
- Boosting an emergency fund
- Remodeling or repairs for the home
- Buying a home for their children or grandchildren who couldn’t qualify
Things to Consider Before Taking Out a Home Loan for Seniors
Planning for the future can be complex. However, there are a few things to think about before you take out a loan as a senior.
