People of all age groups go wrong when financing a home, paying a mortgage, downsizing, or selling a property. This blog will help you to understand these common mistakes and how to avoid them.
Common Senior Housing Problems
- Unwillingness to sell due to personal attachment
- The high cost of hiring brokers to sell the property
- Insufficient funds to keep up with their mortgage
- Difficulty juggling the healthcare payments with her mortgage payments along with other bill payments
The Concept of Downsizing
Senior adults downsize from a larger home to a smaller abode to control household costs. Larger homes and yards require more maintenance, which may become burdensome for older adults. Downsizing a home allows people to live a more carefree lifestyle in their golden years.
Many senior people are house wealthy but cash poor. This statement means they have a lot of cash value in their home, but their monthly income in cash is low. A senior can get their hands on that cash by downsizing from a larger home to a smaller, less expensive home. Wise planning can use that cash to subsidize their low retirement income.
Retiring with Mortgage
Many people retire with mortgages. Having a mortgage isn’t a problem in itself, but one needs a good plan to pay it off without straining the budget. If you have sufficient retirement funds, account carefully to have the money to pay taxes, bills, etc. as well. Investment options are multiple, be wise, and choose carefully – be conservative with funds you cannot afford to lose.
Mortgage Available to Seniors
While there are multiple mortgage options available on the web, you must pick carefully. Your golden years are not the time to overextend yourself. You want to have the funds to enjoy these years and not worry about paying your monthly bills.
Review all your options before making your final decision. Here are a few financing options available for seniors to address their housing needs:
- Standard Mortgage – Based on credit history and cash available
- Second Mortgage – If staying in your present home
- Refinanced Mortgage – Works if present interest rates are lower than your mortgage. There are fees involved.
- Reverse Mortgage – If staying in your present home allows you to get cash out now, then the bank owns your home when you die.
- Home Equity Line of Credit (HELOC) – Used mostly for renovating or repairing your present home. Useful if you need to make changes (widen doorways or ramps) required to age in place.
- VA Loan – Available to qualifying veterans
Are you looking for a beautiful home designed for seniors? Check out The Tapestry, an age-targeted community in Garner, NC. Call 919-772-4663 for more information.