Becoming age 65 and retiring was a long awaited dream. However surviving on a pension in this modern era is not so easy. Perhaps you were fortunate to pay off the home and automobile prior to age 65 yet 40% of homeowners over age 65 have a mortgage on their home.
Think back 10 years life’s basic essentials utilities, insurance, gasoline and food cost less than today. Do you really think the costs will remain the same for the next 10 years? What is a retired person to do about these escalating costs?
A major factor that has to be considered is home repairs. Labor and building material costs will continue to rise like other products and services.
Replacement costs for roofs, heat/air systems, energy efficient windows, and vinyl siding are a few repairs retired homeowners encounter through the years. And as health conditions change a bathroom renovation may be necessary.
The answer is here.
Invest some time learning how a home equity conversion mortgage could be a financial partner. Sure, there will be some costs but you know this already.
These are some things to learn:
How does the HECM payoff an existing mortgage?
How will the credit line work?
Is it true that money from my bank savings can be added to the HECM credit line to earn higher interest?
When the last owner leaves the home what happens?
A financial partner just might be closer than you realize.
Someone once said, “If you have $100,000 cash it will buy every $80,000, every $90,000, every $100,000 home and even a few $125,000 and a few $150,000 homes”. In other words, CASH TALKS.
Retirement years, enjoy the home, partner with a HECM and here is to your good health.