Location and Accessibility
When researching new neighborhoods, make sure they include the amenities which are most important to you. Having your doctors, shops, church, or volunteer opportunities nearby can make retiree’s lives much easier. Independent or 55 and over living communities can also provide safety, convenience, and peace of mind. If you have strong ties to your neighborhood because of friends and family, you may want to consider moving to a smaller home that’s in the area.
Savings and Expenses
While senior housing wealth is continuing to rise and topping a record $8 trillion,2 selling your home and moving into a less expensive location may be an important part of your financial retirement plan. By downsizing into a smaller home, it may lower utility costs as there is less space to heat and cool. Maintenance and general upkeep will typically be lower as well.
However, don’t underestimate the expenses when it comes to selling and buying a new home, such as real estate costs in your area, hiring a moving company, and making your new home your own. The cost of painting rooms, updating fixtures and other simple updates can add up quickly.
In this situation, you may want to consider a Home Equity Conversion Mortgage (HECM) for Purchase. A HECM for Purchase allows the homeowner to use the proceeds from a reverse mortgage, plus the equity from the sale of their current residence, to purchase their next primary home. Best of all, there will be no monthly mortgage payments3 on the new home.
Not Ready to Downsize?
If you have significant equity in your home and are not looking to downsize, a reverse mortgage loan is an option that allows you to continue to live comfortably in your current home while also increasing your cash flow. A reverse mortgage enables seniors, who are 62 and older the ability to turn a portion of their home’s equity into funds without having to make monthly mortgage payments.3 These funds can be to make home modifications, consolidate debt, or even to set-up a line of credit for future expenses.
For more information about how a reverse mortgage loan works and how you can tap into your housing wealth, call 800-976-6211 to speak with a licensed loan advisor.
3 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.