Baby boomers who are approaching retirement may find themselves in a home that is not friendly for aging in place. Or, if they are in the right home, they may struggle to pay for renovations and may choose to move and right-size into a more appropriate home. One financial option that could help answer key questions like how and where they can live out their golden years is a reverse mortgage loan.
Seniors with enough home equity can use a reverse mortgage to access funds to pay for costly renovations or to “right-size” with the purchase of a home they plan to retire in. From the big picture to room-specific features this article presents what homeowners should keep in mind when making this decision.
Seniors should consider overarching factors like cost, size, and location to decide if staying put or relocating are in their best interest. This will help determine whether the cost of maintaining (and potentially renovating) a larger home is worth it, or if downsizing will make more sense down the road financially and comfort-wise.
There are several aspects of a home seniors should take into consideration before they even get through the door. For example, a large lot with extensive landscaping may become a hassle and financial burden later in life.
Several feature’s seniors should consider throughout their homes allow for comfort, convenience and safety in retirement.
A kitchen that worked during child-rearing years may not be as functional during retirement.
As one of the most frequented spaces in the home that just so happens to be where most slips and falls occur, it is imperative to ensure the space is safe and accessible.
It is common to tuck the laundry room out of sight, but, that could mean having to carry large loads up and down a set of stairs or from an inconvenient part of the home to the bedroom.
The location of the master bedroom is the biggest indicator of how much or little you’ll need to do as they often don’t require much work.
Whether you choose to renovate your current home or purchase a new home, a reverse mortgage can help fund your decision. Keep in mind that this loan does require homeowners to1:
Are you interested in learning how to use a reverse mortgage to renovate or purchase a new home in retirement? Call (800) 976-6211 to speak with a licensed reverse mortgage specialist to see how much you may qualify for.
1 Failure to meet these requirements can trigger a loan default that may result in foreclosure.