Choosing a home in which to comfortably live out the rest of your life is a big part of your retirement plan. The type of residence, its amenities and location all have a significant impact on the way you’ll spend your days as well as your overall quality of life. And once you find the home of your dreams, financing it is another game altogether.
The best way to secure your ideal retirement home and finance it at a price you can afford is to start your search as soon as possible. An early start can ensure that you find a home in a desirable location with a market value that fits your budget. It also lets you compare financing options and scout out a mortgage with the most affordable, manageable rates. Depending on how soon you begin your housing search, you may even be able to pay off the mortgage before your retirement begins.
For Americans 62 years and older, a reverse mortgage can pave the way for more a comfortable and rewarding retirement. Unlike a traditional mortgage, with a reverse mortgage, a lender will pay part of your home’s equity back to you in cash, allowing you to use the funds at your discretion.
When a reverse mortgage is used to refinance your home, a portion of your home’s equity serves as collateral and you can take out the necessary cash without having to worry about monthly expenses. Reverse mortgages for purchase eliminate the need for regular payments, requiring only that the borrower maintain the property and pay mandatory taxes, insurance and fees such as homeowner’s association dues.
Many loan programs are available for retirement including, but not limited to:
- Fixed-rate mortgages
- Adjustable-rate mortgages (ARM)
- FHA loans
- VA loans
- Manufactured & modular home loans
- Cash-out refinances
- FHA 203k home improvement loans