If you are planning to retire in the next ten years, you should buy your retirement home now.
Retirement is something that is on the minds of a lot of Americans, especially in these politically uncertain times. If you are considering retirement in the next ten years though, there are several benefits to buying your retirement home now, especially regarding mortgages. Here are a few reasons why you should buy your retirement home well before you retire.
Mortgage rates are at a record low. Thanks to Brexit, rates on 30-year fixed mortgages have dropped to an average of 3.41 percent, which is very close to the historic record low of 3.31 percent in November, 2012.
It is easier to get a mortgage when you are still working, since lenders evaluate your application by looking at your DTI (debt-to-income ratio). Obviously this number is more favorable when you are employed.
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Renovations can not only be costly, but they can take a toll on your stress level. Completing any necessary renovations before you actually retire will make for much smoother sailing.
Planning a budget for your retirement is a lot easier when you know exactly what your bills will be. Getting a mortgage before you stop working helps with this.
You can always rent your retirement home out, if you are currently in another mortgage. Owning a rental home may also help you retire sooner, since the extra income may give you some extra padding in your account.
Retirement may seem like an unknown at this point in your life, but getting your mortgage early so you know what to expect in the future is one way to take control of it, and ensure you aren’t left out in the cold when you decide to leave the workforce.[ via ]