Applying For A Mortgage After Retirement

Buying a home later in life is something many people do. Applying for a mortgage after retirement isn't. Should it be? Having a mortgage with a low monthly payment will provide a clear understanding of what your monthly expenses will be which can be helpful when creating a spending plan. Not to mention, with a mortgage, you’ll be able to tap into the equity of your home to reinvest because retirement doesn’t mean it’s time to stop building a nest egg. Many homebuyers and investors who can afford to pay cash for a property choose to finance because of the its many advantages.

Alloy Wealth Management works with pre-retirees and retirees who want a better understanding of their finances and help achieving their goals. One of our areas of expertise is retirement planning. We can help you find ways to generate lasting income in retirement and slowly withdraw money from your retirement savings in a tax-advantaged way. Last year over one-third of homebuyers were between the ages of 59-95 and most financed their purchase. If you are considering applying for a mortgage, whether you should or shouldn’t has to do with your credit, your income, and your ability to maintain the property, among other things. 

Applying for a mortgage after retirement may be the right financial move for you and it may not be, but we won’t know until we meet to with you to evaluate your portfolio and your debt-to-income ratio and discuss your lifestyle goals. Of course, mortgage interest rates need to be considered when deciding whether to pay cash or finance a home. If you have questions about retirement planning or investment management, call 800-689-3935 to speak with one of our fiduciary financial advisors.