Financial advisor Roger Wohlner, one of the
Equifax Personal Finance Blog experts, offers guidance. His recent article, “6 Questions to Ask Yourself Before Taking Out a Mortgage for Retirement,” suggest questions to ask yourself that might help you work through the decision process.
In summary, you’ll need to consider the amount of cash you’ll have during your retirement and how a mortgage payment will affect your budget. Wohlner also suggests that you think about the lifestyle you hope to have during your retirement. You’ll need to think beyond the cash or investments required to support that lifestyle and also consider where you want to live. Is the home you’re buying in the location you hope to call home for many years? If you hope to travel extensively, who will care for it? Should you consider a low-maintenance community?
Wohlner also suggests that you consider your heirs when taking on a mortgage later in life. If you pass away, will your surviving spouse and/or your children be able to keep the home—or at least make the payments until it sells?
Take a look at the rest of Wohlner’s information, including questions to ask if you want to originate a mortgage going into retirement, on the