Reverse mortgage
My husband and I are retiringing this year. No children and owe $110,000 on our home, which includes about $3,000 in a home equity. I have no work pension . My hubby has a retirement fund that has gone up, except for the recent turn if events.
My question is, does it make sense to apply for a reverse mortgage? Or refinance to lower rate? Our home is worth $230,000. We’ve also thought ofmoving out of Illinois, but the weather frightens us.
Terry Says
No, you don’t want a reverse mortgage; you’re too young and won’t get enough, and probably won’t stay there during your long retirement. What you SHOULD DO IMMEDIATELY is refinance your home while you are both still working and can qualify! Don’t tell them you’re retiring!!
If you refi, you have two choices. Take a 30 year mortgage (rate should be down close to 3%) and you’ll have the lowest monthly payment as long as you stay there.
Or take a 15 year mortgage at a lower rate (definitely UNDER 3%) and plan to pay off your home in full over the next 15 years. At that point you could do a reverse mortgage, when your home is fully, or almost, paid off.
And if the weather elsewhere scares you more than the winters in Illinois, I’m betting you’ll have a good long retirement!
Contact Leslie Struthers at Guaranteed Rate for your refi. You don’t have to mention my name — she’s just the best! Her email is Leslie@rate.com.
