For people of all life stages, moving from one place to another is an important decision. And for retirees, buying a new home in retirement comes with its own unique set of challenges.
Downsizing to a less expensive residence during retirement can be one way to free-up cash and improve finances, however, retirees should carefully crunch the numbers on moving costs, fees and taxes, before deciding if a smaller home is the right move for them, according to U.S. News & World Report.
Before packing up the house and relocating, retirees should consider how a monthly mortgage payment might affect their retirement budget, including their monthly cash flow, says the U.S. News article, which outlines five key considerations retirees should think about before buying a home in retirement.
“Many homeowners rely on a 30-year mortgage, which often has low payments,” U.S. News writes. “But that means you could be on the hook for monthly payments for the majority of your retirement years.”
The article also encourages retirees to aim for a mortgage payment that won’t hinder their abilities to pay for their other retirement wants and needs, while also prompting retirees to consider their additional housing costs and their ability to quality for a mortgage during retirement.
Read more at U.S. News & World Report.
Written by Jason Oliva