Perhaps you are about to embark on your journey as a first-time homeowner, and you are already thinking about the future. Or maybe you are at retirement age now, trying to decide whether to stay in your home or sell it. Either way, knowing the many benefits of owning a home while you are retired can help you decide what path you want to take. Let’s take a look at a few chief advantages.
Benefits to Owning Your Home
- No rent payments. Let’s discuss the most obvious benefit of owning a home in retirement first, which is that you do not have to pay rent. Rent costs hundreds or even thousands of dollars a month, depending on where you live. It is not an investment, just money that goes to lining a landlord’s pockets. Having to deal with that in retirement is not something you want, especially as inflation can keep driving rents upward while your income remains fixed. Living in your own home can help you avoid those ballooning costs. Plus, if you finish paying off your home, you do not have to make any more mortgage payments either.
- You can take in tenants. Speaking of living on a fixed income, maybe you will find yourself looking for a simple way to make some more money while you are retired. One common practice is to take in paying tenants. This is something you might not be able to do if you did not own a home.
- A reverse mortgage can supplement your retirement income. A different way to supplement your income during retirement is to take out a reverse mortgage. This option becomes available once you meet the minimum threshold for equity in your home. Reverse mortgages are extremely flexible, since you can use them any way you choose. They do not come due until a maturity event like the sale of the home or the death of the last borrower. This makes them very affordable. Without owning your own home in retirement, you do not have the option of this form of financing.
- You can enjoy your retirement to its fullest in comfort. As the saying goes, “There’s no place like home.” Renting simply is not as satisfying as owning a home that you can decorate and customize all you want. Since these are the retirement years you worked hard for, you deserve to experience them where you feel most comfortable.
- You have more money available to do other things. Speaking of enjoying yourself, think about all the money you are saving when you do not have to pay rent. If you are done paying off your mortgage, you can use that money for other purposes. Put it into savings to increase your financial safety net and give yourself greater peace of mind, or spend it on something you care about like upgrading your home, paying for a grandchild’s education, or going on a trip.
- Your heirs can inherit your home. Owning a home gives you something of substantial material and sentimental worth that you may pass down to your heirs someday. Just as your home brought tremendous value to you, so it can do for your heirs. That said, keep in mind that if you take out a reverse mortgage, that can affect your heirs. They will need to pay it off if they want to keep the home.
Buy a Home or Refinance in Farmington Hills
Buying a home of your own is an excellent investment in your future. During your retirement years, it can help provide financial stability and emotional comfort. MMS Mortgage Services can help you buy a home with a flexible loan that will fit your needs now and over the years to come. If you already own a home, but your current mortgage no longer is working for you, we can help you refinance so you can stay in your home affordably. To schedule your consultation, please contact MMS Mortgage Services at (248) 788-0800. We can help you buy a home or refinance in Farmington Hills
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