Why It’s Better to Buy Retirement Homes before You Retire

February 13th, 2017 | By | Posted in Uncategorized

If you’re in the final years of your working life before you hit retirement, you’re probably starting to think about where you want to be when you finish your career and spend the rest of your days enjoying the things that you never had time for during your working years. You might think that purchasing your retirement home is just as far away as your actual retirement, but the truth is that there’s no better time than the present to purchase the home of your dreams! Here’s why buying a home today can be one of the best decisions you’ll ever make.

Lock in a Low Rate

Did you know that interest rates on a Goodyear, AZ, retirement house, as well as across the nation, are at some of the lowest rates that they’ve ever been? Rates aren’t quite as low as the historic low set in 2012, but they’re pretty close, and there’s no guarantee that they’re going to stay at the rate they’re at right now. By buying now, you can lock in the rate that makes sense for you and be able to get more home without breaking your budget.

A low rate onĀ retirement homes in PebbleCreek also means that you have the flexibility to send more of your money towards the principal rather than interest while you’re still collecting a salary, meaning that you’ll have fewer payments to worry about when you do opt for retirement. Money can’t accrue interest if it’s at zero, and by getting a lower rate and paying as you go, you’ll be able to get your home paid off faster and be able to use more of your money for fun.

Expand Your Options

A large part of the type of loan you qualify for whenever you apply for any type of loan is your debt-to-income ratio. The more income you have, the better your chances are going to be of getting approval for more money. In the housing market, that means that you’ll be able to afford either more of a house or afford setting aside money to help pay for remodeling expenses if they arise. But if you’ve already retired, your income is going to be very low, and you’re going to limit the amount that a bank is willing to trust you with when you apply for a loan. As long as you’re drawing a salary, you’ve improved the chances of getting a better loan, either in the form of more money or lower interest.

Make Your New Home Work for You

If the area that you’re planning to live in a prime location, chances are that you’re not the only one who thinks so. With that being the case, why not put your house to work for you and rent it out while you continue working toward your retirement? If you’re able to get even half of your mortgage payment back by renting your new home as a vacation spot throughout the year or by renting it to someone as their home, that will save you at least six payments’ worth of cash every year. Once you’re ready to retire, you can officially move in, having made thousands back from your investment that will make retired living much easier

As with anything, retiring and living a life of relaxation requires smart planning to be successful. When you’re searching forĀ retirement homes in PebbleCreek, it helps to plan ahead and make the purchase before you remove yourself from the work force. With the right plan in place, you can make sure that you get a home you’ll be proud to live in for the rest of your days.

 

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