After toying with the notion of moving to a smaller home, the two of you have decided to stay put. In the recent ‘hot” real estate market, you knew, the profit from selling might have liquidated your mortgage debt and still enabled you to afford the new purchase. Still, you’re both fond of the neighbors and the neighborhood, and your final conclusion was that the energy and expense of relocating would be better channeled into a couple of trips or cruises.
At the same time, with each of you employed on only a part-time basis (you both called an end to a full time professional career five years ago) and the shakiness of the investment markets, you’re finding the mortgage payment somewhat of a drain on your retirement finances. But, with interest rates on the rise, though, refinancing hardly makes sense.
You might look into “exchanging” your forward mortgage for a reverse mortgage, with the immediate advantage being that there will be no obligatory monthly payments. In a sense, your housing wealth will be supporting your lifestyle. Depending on the size of your current mortgage loan, the equity built up in your home might be enough to eliminate the first mortgage debt and still allow for a reserve fund that can be tapped for other needs.
By shifting “gears” from Drive to Reverse, you can turn off that monthly mortgage payment and enjoy your neighborhood – and your travels.
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894