New Options for Retired Homeowners

The home that you live in right now is likely the home that you expect to live for the rest of your life. It's the place where you imagine watching the world with your spouse from your front porch and watching your grandchildren open their Christmas gifts. Even if you make regular payments on your mortgage throughout your career, you might find that you do not pay it off before you retire. If your mortgage is more than you can afford, there are some options you can choose.

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Move to a Retirement Home or Community

The elderly often suffer from a number of different health conditions, and those conditions can change the way you feel about your home. Arthritis and mobility issues can keep you from venturing to the second floor, and other conditions can prevent you from enjoying every room in your house. Selling your home and moving to a retirement community might be a good choice. These communities often have nurses working round the clock and alarm systems that help you reach an orderly, doctor or nurse during a medical emergency.

Downsize Your Home

When you have kids living at home, a larger home is the perfect fit for you. Once you get a little older and your baby birds leave the nest, that same home can suddenly feel much larger and too big for you and your spouse. Downsizing lets you sell your home and move to one that is a little smaller and a better fit. Depending on when you bought your home and the amount you paid, you may even find that you can make a profit when you sell it and add the proceeds to your bank or retirement account.

Take Out a Reverse Mortgage

A reverse mortgage is another choice for those in their retirement years. A reverse mortgage lets you borrow a lump sum against the equity you built in your home based on your past payments. Your children or any heirs can contact the lender and take out a new mortgage or meet other requirements to buy the home after you pass on or decide to move. You can use a Reverse Mortgage Calculator to get some idea about how much money you can borrow and the interest charged on that loan. If your kids have homes of their own and don't need yours, this might be your best option.