Real Estate News

A little work can make a retirement mortgage function

Published: 18 Jan 2017

Managing a mortgage in the face of retirement can take more effort than it might seem. The process of financing and beginning the mortgage could take significant investment, making proper protection of ownership important. There are other important things retirees need to do to facilitate a home purchase, as well.

The U.S. News & World Report mentioned the possible need for renovations before retirement begins. This could obviously eat into a future homeowner's budget and leave them with payment concerns, but it might be better to factor this into the beginning of the process so it doesn't come up as a surprise later on.

As the source described, renovations can go toward several efforts, from energy efficiency plans to updating individual rooms. Adding to a home entirely could also fall under the same type of expense. And in a world where the "sharing economy" has taken off, the article also mentioned that new rooms could also give retirees a new income in the form of renting out space. However, this might not be a reliable plan given the variables involved.

Retirees also need to know the tools that could help them obtain financing. Such options could include government programs or other types of mortgages not typically considered. Freddie Mac, for instance, can allow applicants to use their retirement accounts as a source for mortgage refinancing. If the applicant meets the retirement standards, harnessing these assets could be the beginning of a new transition that signifies more mature ownership.

However they acquire new property, owners can use title insurance to supplement their claim and keep their new home secure. With post-retirement properties, the extra security of claiming complete title could also be assuring, as owners can know that their title will stand defended in the face of outside challenges.