As mortgage rates inch upward and the housing market shows little signs of recovery, some people may have a sense of urgency that they should buy that retirement home while the getting is still good. But rushing can lead to ruin when it comes to buying a retirement home.
That’s not to say that you shouldn’t take advantage of what could be some of the lowest interest rates and home prices that might be around for a while, though who knows with this unpredictable economy, but if you do decide to proceed, do so carefully.
Can you afford a retirement home?
Although it may be a smart idea to purchase a future retirement home while mortgage rates are low, “really think about how that will affect your income and expenses,” says Leslie Tayne, an attorney with the Law Offices of Leslie Tayne, specializing in debt issues. “What will this do to your budget?”
Depending on the circumstances, a new home can be a very shrewd move, or a significant drain on assets for seniors. “It has to fit into a broader retirement plan,” says Dan White, president of Daniel A. White & Associates.
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