Should You Downsize Your Home or Get a Reverse Mortgage?

Arizona homeowners may be able to get a reverse mortgage instead of moving.

Whether you decide to get a reverse mortgage or to downsize your current home, there are a few things to consider.

Mindful Money shares several helpful tips for seniors who have questions about reverse mortgages.

Financial Stability in Retirement 

Home equity that you’ve accumulated may be used to enhance your living situation.

You might prefer to sell your home and use the proceeds to purchase a property that’s easier to manage or use the funds to pay toward a senior living facility.

Perhaps, you want to age within your home and use the equity to make significant improvements, without incurring additional monthly debts.

Also, a reverse mortgage will not impact Social Security benefits that you receive, as the proceeds are from a loan versus from income.

Homeowners in Arizona, California and Colorado who want to get a reverse mortgage for financial stability in retirement are welcome to speak with Samantha Cooley at Mindful Money.

Samantha has decades of mortgage experience and kindly assists seniors who have questions about the pros and cons of reverse mortgages.

Selling Your Home

Downsizing might be a great option if you want to relocate to live near family members or friends.

Selling your home could be a wise idea if you want to downsize to a condo or a development that won’t require frequent property maintenance.

Get a Reverse Mortgage 

If using some of the equity in your home is more desirable than downsizing, you may be able to get a reverse mortgage.

Qualified seniors must be at least 62 years old.

You must reside in the subject property.

A significant amount of home equity is needed to get a reverse mortgage.

Considerations 

Avoid forced recommendations. 

The decision to downsize or to stay in your home during retirement is totally up to you and family members that you want to involve.

With a reverse mortgage, you could lose your home if the property taxes and the homeowners insurance are not paid on time or if the property is not adequately maintained.

Mindful Money offers ethical and courteous mortgage services for borrowers in Arizona, California and Colorado.

Contact Samantha Cooley to get a reverse mortgage consultation today.