• Question
  • retirement home, purchase outright or finance.

    Asked by a 72 year old man from Hope Valley, RI on 10/19/2014

    My wife and I are retiring to az from the east coast. We have enough savings to buy a house outright but would like to know if it would be better to finance.

  • Categories: Downsizing/Relocation, Housing


  • Get a FREE 1-on-1 phone
    consultation with this advisor
  • You may also want to consider using a Reverse Mortgage to purchase the home. The down payment would be approximately 50%, and you'd never have a monthly mortgage payment obligation. That way you could put the other 50% to work for you.

    A lot of people aren't aware the FHA-insured Reverse Mortgage program that's sponsored by HUD can be used to purchase a home. The program became available January 1, 2009, and there aren't any income, asset, employment or credit considerations. You just need to be at least 62, and the home must be your primary residence.

  • Login to rate this answer:   Answered on 10/19/2014
  • Steve 


    San Francisco, CA

    Get a FREE phone consultation
    with an advisor. Learn more...
  • It also depends on your tax situation, what your expected return is for the money if you were to invest it and your appetite for risk. Given today's low interest rates and relatively higher returns in the stock market you could potentially make a case for having a mortgage and then investing if you have a longer time horizon. You may want to consult with a a tax advisor and a fee only financial advisor.

    You can reach out to advisors here: https://www.newretirement.com/free-retirement-consultation.aspx

  • Login to rate this answer:   Answered on 10/20/2014
**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.