There are many questions to think about as retirement approaches. For most people, your house is your single biggest asset. And for most people, it's a tough decision. Why? Well, first and foremost, your home of several years probably has many wonderful memories, so there is a huge emotional component. On the other hand, you have to take your true financial situation into account.
Retirement should be an exciting time to plan for a stress-free and enjoyable phase of your life. One with fewer, not more, headaches and stable finances that will allow you to live comfortably.
With the real estate market at a new all time high, it is definitely a good time to lock in the profits on your house. Who knows how long this run of appreciation will last? A note of caution here, as interest rates rise, buyers who get loans on their purchases will be affected. Rising interest rates means less of a mortgage that most buyers can afford. This will result in real estate prices going down.
Most investment professionals recommend becoming more and more conservative with your investments as you get older and near retirement. That's why selling your house now and locking in the profit is not a bad idea at all.
Considering a reverse mortgage? It can be a great solution for tapping into the equity in your home, while still owning it. Here's how a reverse mortgage basically works - a mortgage lender sets up a payment schedule, payments made to you, based on a percentage of your home's current market value. After you no longer live in the home, the mortgage lender is authorized to sell your home to recuperate the total payments that were made to you.
A reverse mortgage is attractive to retirees because of the substantial monthly payments that they will receive. Those payments that you might receive can be very very appealing, but of course there is a downside to getting a reverse mortgage and some important details to take into account.
First, ALL loans on your house must be paid off. There can be NO loans or liens of any kind against your house in order to get a reverse mortgage. Depending on your situation, however, there are times when the mortgage lender can have the exisiting loans subordinated (put in place behind the new reverse mortgage). Also, you must maintain your house during the time that you receive payments or the mortgage lender can demand a full repayment of the loan. Why? Remember that the mortgage lender wants to ensure that the house is worth the value at the time of the reverse mortgage. You must also keep current on the homeowner's insurance and property taxes. Lastly, if you change ownership, such as adding another owner onto the deed, the mortgage lender may demand full repayment.
While it may seem like these are all easy rules to follow, you never know how your situation might change. The additional rules of a reverse mortgage might become problematic and have real negative consequences for your future.
That's why selling your house now and locking in the equity might be the best solution for you. On top of that, avoiding the lengthy process of selling your house with a real estate agent, may seem even more appealing. After all, we are talking about a major life change, a wonderful one, that requires your energy and focus.
That's pretty much it. You really can make it easy to sell your house. The hassles of realtors, showings, open houses, repairs, closing costs, loan approvals, buyer requests, termite fumigation, and the potential for the deal to fall apart - those things don't happen when you sell your house to us.
Wouldn't it be nice to know that you can start retirement after you accept our offer? You will have turned your hard-earned equity into cash, allowing you the freedom to enjoy retirement the right way.