Tips for Retirees When Weighing a Mortgage

When it comes to deciding whether you want to continue paying off your mortgage in full or move to a house that better suits your needs is difficult at any age. However, this decision holds more weight of those over the age of 65. Though 64 percent of retirees today agree that they’re most likely to move at least once, it’s important to consider all aspects.

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Here are three tips when it comes to weighing a mortgage:

  1. Consider the down payment. Wanting the best interest rates isn’t a new desire for home buyers. Since retirees have the knowledge, resources, and assets it’s typical that many are willing to make a larger down payment in order to get a low interest rate.
  2. Age is just a number. Due to federal law, as long as a borrower can show proof of income that’s enough to qualify for a mortgage, lenders have to turn a blind eye to age and health status in the qualification process.
  3. Don’t push comfort under the rug. When weighing the decision to either continue paying off or purchasing a new home, it’s important to consider not only return on investment (ROI), but how far you’re willing to push your risk to comfort level. Some retirees may find more reward in having a small stash away, while also being able to say they’ve paid off the house.

According to the U.S. Bureau of Labor Statistics, 72 percent of American homeowners age 65 and older have fully paid off their mortgage.

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Posted in Downsizing, Home Buying, Retirement
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