If during those frantic real estate boom times they refinanced this important asset, it is possible that they cannot sell and pocket enough money to move or even retire.We each face our individual monetary future differently.
Let us assume that Social Security sets in at the national average of $1,294. If indeed the mortgage payment is current and reasonable, with taxes and interest the payment would probably be approximately $800 per month. That unfortunately does not leave much for the essentials. We must also expect medical expenses, even with good insurance (Medicare plus) there are extras to be purchased and various vitamins. One might also be visiting a Chiropractor or massage therapist. Exercise classes are essential as we reach that wonderful age of retirement.
Beyond credit worthiness and down payment money, the necessary qualifications to purchase have diminished with the lack of income. Many older people will also have a 401K or other retirement income.
So a move to a retirement village or less expensive area of our country is anticipated. You can review the ten best places in America to retire. You might visit relatives or friends who have moved and purchased in Arizona or Florida. I also read about Austin, Texas as a likely inexpensive spot.
Please talk with a local realtor in your present home town and receive a current market analysis on your home. It is possible that renting the home and receiving a monthly income will work for you. Holding a mortgage will work with the correct terms. I would suggest an attorney be involved to protect you.
Let us face the truth that there will come a time when retirement or assisted living becomes a choice. These facilities are expensive. Although living in such an environment will relieve you of weekly and monthly expenses you will give up your independence. Again, it is advisable to visit and talk with the residents.
Life is filled with choices. The time to decide is in the present. Make a thorough list of your possibilities. Talk them over with a loved one or close friend. If you have anticipated leaving your home to your children, make certain that they are agreeable. Again, if they would sell it you would want to know the value. It is possible that remaining in your current home will be your best move (pardon the pun). Remember, this advice comes from a Realtor.