Spring Mortgage Planning
Spring is here. (And here in Chicago that means…well…call me in four weeks.)
But for homebuyers, once the weather breaks the plans to buy a home that have been growing all winter now become reality. Everyone is out walking and driving with their real estate agents, pounding the pavement, and, eventually, negotiating terms for the purchase of a property.
Lately, many people have been asking about “the old” fixed rate mortgage versus adjustable rate mortgage debate. I have posted recently about the main ideas, but here’s a thought: what about retirement?
No matter what situation you find yourself in, I am a big believer in starting to save early. Most first time homebuyers think short-term. And this is obviously important. But what if someone told you that if you were to hold the property that you are buying for 30 years, even if you move out, and you would make $70,000? Or $100,000? Or more?
What does this have to do with the mortgage? Fixed rate mortgages allow you to keep the same interest rate and maintain a steady payment no matter what may happen. So, even though a borrower may not anticipate living in the new home for more than, say, three years, it may be prudent to think of the home as retirement income as well. In addition, once you have moved out and you have found a renter, the rental income should, hopefully, balance out a good portion of the mortgage debt.
As you talk with your agent about properties, get their take on long-term buying in the neighborhoods in which you plan to buy a home. Your first little nest could be the foundation of your retirement mansion.
RSS Feed
Leave a Reply