How do seniors purchase a home after retiring?
If you already own a home that's paid for, you could sell and use the proceeds to buy another or, you could raid your savings if you have enough money stashed away.
You could also us a traditional mortgage if you have enough income and good credit. But even if that's possible, who wants to take on a big monthly mortgage payment after quitting work? Many advisors discourage taking on debt at that stage in life.
However, there's another opportunity, often overlooked: Finance your new home with a Reverse Mortgage. With a reverse mortgage, you borrow against the property's equity but make no payments. Instead, the interest is added to the principal and both are paid off after the home is sold. You can keep the loan for as long as you live in the home, and no matter how old you get the lender cannot force you out so long as you keep up with taxes, insurance and upkeep, even if the debt grows to be more than the home is worth.
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REPORTS & ANALYSIS
- Rate Lock Advisory. For the past couple of weeks rates have moved sideways.
- Friday Market: Leading Economic Indicators were slightly better than expected but did not significantly move the rate market.
- Friday's Rate Results: Mortgage Pricing based on Mortgage Backed Securities (MBS) closed down 0.12 point.
- 30-year fixed-rate mortgage (FRM) averaged 4.15 percent with an average 0.5 point for the week ending Feb. 16, 2017, down from last week when it averaged 4.17 percent. A year ago at this time, the 30-year FRM averaged 3.65 percent.