You are 55 years old and you’re buying a home. You plan to get a 30 year fixed rate mortgage. Bad move? Right now, the average life expectancy for men is 85 and women 87. So, when do you give up on owning a home?
In this market…you don’t. Here’s why… If you do nothing but have a paid off home in retirement, you’re going to be ok. If you don’t save a dime in a retirement account, but you own your home and get Social Security, you should be comfortable. Of course, the assumption is you have Health and Long-Term Care Insurance. Pretty big assumption, so make sure you check-off those boxes…ASAP
Do the math and get on pace to pay off your house before you stop working, with 4-5 years of working left so you can use the catch-up provisions to boost your retirement accounts before your retirement date.
If Reverse Mortgages are still around and you retire with a paid off home, you can use the equity as a source of income as well. I don’t know how long they will last, but if you can take advantage of using a Reverse Mortgage in San Diego‘s market, you absolutely should.
Other topics covered on today’s program:
– What real estate investors are doing due to this lack of inventory
– Whether or not it’s a good idea to buy a home over the appraised value just to “get in”
– Where more Millionaires are putting their money
– The Fed’s decision to continue buying Mortgage Bonds and what they will do to Mortgage rates in San Diego
Today’s On-Air Guests:
Dan Osgood, my Financial Planner in San Diego and author at FreeInvestmentAudit.com
Jon Jerotz, San Diego Mortgage Expert and VP of Mortgage Lending at Guaranteed Rate
Jason Lopez, San Diego Real Estate Expert