• Text Size
Free Consultation
 
First Name
Last Name
Reverse Mortgage
Life Settlement
Phone Number
-  - 
State of residence

Industry Articles

Industry Articles Home > Reverse Mortgage News

Retirees should take advantage of low 15-year mortgage rates to pay off home faster
2010-06-02

One of the largest factors in having adequate retirement income is the cost of housing, according to CBS Money Watch. Low inflation and interest rates make refinancing very attractive to current homeowners, and it may help retirees boost their nest eggs in the long run.

Last week's 15-year mortgage rate dropped to 4.2 percent, marking the lowest rate since 1991, the website reports. Older adults who refinance to a 15-year mortgage may pay off their home before retirement and save money on the extended interest rates that come with a 30-year mortgage. Those who do not choose to refinance can also speed up their payback by making more than the required mortgage payment each month.

Retirees who pay off or owe very little on their mortgage may also have the option of taking out a reverse mortgage loan during retirement. Reverse mortgages provide an alternative source of income if retirees fall short on income or face a financial or medical disaster. Others may simply use funds from a reverse mortgage to supplement their current savings. Retirees benefit from these agreements because loans will not be repaid until the borrower passes away or moves to another primary residence.
ADNFCR-2917-ID-19814839-ADNFCR