• Question
  • I am self-employed (freelance writer) 63, with savings and huge equity in my property. Can I refinan

    Asked on 11/27/2012

    I am 63 and own a condo in NYC worth somewhere between $2 million and $2.5 millllion. The balance is just $80,000.
    I would like to take $250,000 out of the apt. (and pay off the $80,000 from the $250,00)

    I have roughly $680,000 in retirement savings in IRAs and a Roth.

    But I left my last job in November of 2011 and do not plan to go to working full-time. I Since March of this year, I've been freelancing (I'm a writer) earning about $3,000 a month)

    I have been told that, because I don't have a guaranteed source of income and pay stubs, I can't get a mortgage-- despite my savings and equity in the apt.
    Is this true?

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  • Categories: Mortgage Refinancing, Reverse Mortgages, Qualifying, Housing

Answers

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  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • It sounds like you are looking to refinance your mortgage which does sound like a reasonable plan.

    However, ever since the financial crisis of a few years ago, cash out mortgage refinancing has been extremely difficult secure. But, we have heard that things have recently loosened up a bit and your financial situation seems quite strong. So I would encourage you to talk directly with a few banks to assess your eligibility. Go ahead and be upfront with the loan officers about your situation.

    You can review currently available interest rates and mortgage lenders here:
    http://www.newretirement.com/Services/Mortgage_Refinancing_Calculator.aspx

    While refinancing is probably your best option, you might also look and the pros and cons of selling your condo and downsizing to something less expensive in order to access your home equity.

    You could also look into the benefits of a Reverse Mortgage. The HECM Saver Reverse Mortgage is a lower cost Reverse Mortgage product designed for people like you. We can connect you to a Reverse Mortgage lender who can answer your questions about this product.
    https://www.newretirement.com/reverse-mortgage-marketplace.aspx

    Additionally, because you have such a significant asset base, you may benefit from consulting with a Financial Advisor. We are happy to offer you a Free Retirement Consultation with a prescreened financial advisor:
    https://www.newretirement.com/free-retirement-consultation.aspx

    We wish you all the best and hope you can continue to use us as a resource for your retirement concerns.
    Sincerely,
    http://www.NewRetirement.com

  • Login to rate this answer:   Answered on 11/30/2012
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  • You won't qualify for a traditional mortgage, but you do qualify for a Reverse Mortgage, as long as your Condo has been FHA approved.

  • Login to rate this answer:   Answered on 11/30/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.