• Question
  • Planning to Downsize

    Asked by a 57 year old man from Dunlevy, PA on 3/3/2017

    I plan to retire in three months my wife will continue to work. We are considering downsizing and cannot afford to carry two mortgages. Is it better to sell our present home and purchase the new home before I retire? There would have to be some financing and our income would only decrease by about five thousand.a year. Would the banks and finance companies look at us different with me retired?

  •  
  • Categories: Downsizing/Relocation, Housing

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

    Get a FREE phone consultation
    with an advisor. Learn more...
  • Hi,

    Good question and it's smart to consider how retirement and any associated income changes will impact your ability to finance a relocation.

    Since getting a mortgage is based on your ability to repay it you'll probably have more success getting financed if you seek it before you retire. However you should model whether you'll be able to pay your mortgage after you retire as well.

    Our DIY Retirement Planning tool allows you to model housing options in the Your Plan section - you can explore:
    - refinancing
    - downsizing/relocation
    - reverse mortgage

    https://www.newretirement.com/

  • Login to rate this answer:   Answered on 3/13/2017
**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.