Amanda's note: This was provided by an online contact.
The Baby Boomer generation is not only starting to retire, but they are living longer and healthier lives than ever before. This phenomenon has created a greater need for variety in housing for the more senior generation.
The general retirement age has slipped from 65 to 55, giving seniors more time to enjoy their lives after their careers. Active older adults are looking to downsize and live more simpler and enjoyable lives.
If you are thinking about looking at new homes in Montgomery, TX, you will want to know about the mortgage market for seniors. Many people might assume that they are too old to get a new mortgage, but there are plenty of options available.
Whether you are looking to move into a condominium, an Active Adult community, or single dwelling home, you will need to know all of your lending options. Start by talking to your bank and doing all of the research about your current mortgage standing.
Getting a mortgage is similar at any age, but for seniors there is more focus on the repayment arrangements than for younger borrowers. Your ability to repay the mortgage is the determining factor in most cases. Every circumstance is different. You may have already paid your existing mortgage and be looking to sell your current home, and only borrow the amount needed after the proceeds of your sale. Talking to a professional lender will help you to formulate a financial plan that is right for you.
In any case, there are certain aspects of a mortgage that you should insist on when looking for the right loan. You want to make sure that your mortgage is not layered with fees. Settlement charges, application fees and discharge fees can add a significant amount to your final numbers.
Regardless of your age, your loan should be considered on many different levels. Your current mortgage status and history, your credit rating and your outstanding debt will all come into play when applying for a new mortgage. Your application is the same as any other loan so make sure to look for the lowest interest options. Ask about short term low interest loans that may allow you to keep your monthly costs lower.
As a senior that is likely in a more unique financial situation than most borrowers, you can benefit from finding a loan with a good amount of flexibility. Ask about loans with unlimited repayment options to allow you to pay off your mortgage faster and with less interest.
Just because you are leaving the working portion of your life doesn’t mean that all of your choices have to be limited. The lending landscape is changing to meet the needs of a large senior population. Make sure that you do your homework, connect with a respectable and reliable lender and start enjoying this next stage in your life.