Here are several excerpts from a recent article in Housingwire, by Jessica Guerin, an editor at the magazine, where it was noted that a recent survey revealed that 85% of non-retirees want to own their home in retirement, and most don’t plan on having a mortgage when they do retire. But, there’s more to this story…
For many, retirement goals include travel, leisure and, apparently, homeownership. According to a recent study by Voya Financial, 85% of non-retirees said they want to own their own home in retirement.
While about a third of the survey respondents who were not yet retired said they have a mortgage balance, 80% said they were confident they could pay it off before retiring.
But survey results show this might be a bit optimistic. More than a quarter of retired respondents said they still had a mortgage, and over half of this group had a balance of $50,000 or more.
While owning a home in retirement has its benefits, like tax breaks and access to equity, it could come with a downside, too.
Experts say that reverse mortgages can make sense for certain people who want to stay in their homes, because a reverse mortgage eliminates the homeowners’ monthly mortgage payment and grants them access to cash that can bolster their income in retirement.
While public perception of these loans is clouded, some experts say they deserve a second look and might eventually become an important part of the retirement income puzzle.
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