Elderly Homeowners and Refinancing: Everything You Need to Know

Elderly Homeowners and Refinancing: Everything You Need to Know

No matter the house, you might find a time to say “goodbye.” This could be because of a new job. Maybe the house isn’t large enough for you to start a family. Or maybe, you’ve grown older and taking care of an entire house has simply become far too much work. For many, this means that it’s time to refinance a mortgage and start looking at the market. However, for a handful of more senior homeowners, you have more to consider if you’re looking to offload your property and scale to something a bit more reasonable.

What is refinancing?

When it comes to loans and mortgages, refinancing is typically a fancy way of saying “replacing.” Most commonly, this is done when a loan is a bit too risky or expensive. Many times, you’re able to refinance that loan into a better, more agreeable one. It’s a savvy way to acquire better terms and is one of the best ways to discover what to consider before refinancing a home loan.

Usually, refinancing follows a pretty standard procedure. You start by having an existing loan that could use some more favorable terms. Once that’s set, you find a lender that’s offering a better loan or more agreeable terms and you apply for that. That new loan will then pay off your current loan in its entirety, then you begin to make payments on the new loan until it has been completely paid off or until you refinance. Refinancing is a great way to hit lower payments, shorten the loan period, and even save money. It’s important to note, however, that refinancing can take a fair amount of time and money, so you need to be sure that you’re making the right choice.

Making the home an investment

Even if you’re going for the refinancing route, you must do your best to make the home market-ready. Yes, this does mean that you may need to invest some money back into it but that’s simply because you want your efforts to be an investment for someone else. It doesn’t mean that you need to empty your savings account and complete modernize your home, but it does help for you to do your research on something along the lines of aging in place remodeling. Aging in place is fairly self-explanatory — it’s the idea that you’ve inhabited a certain space for a lengthy period of time. The remodeling portion refers to the amount of work you do the unit during your occupancy. By keeping up with small remodels here and there to keep current with market interests, you’re maintaining home value and, in the event that it comes time to sell, are positioning yourself at the front of the market.

The remodeling process doesn’t even need to be all that intensive. By keeping paint colors fairly neutral and avoiding too many distinctive patterns, tiles, or carpets, your home is sure to remain contemporary throughout the years. Popcorn ceiling, on the other hand? Better hire someone with a good scraper and strong upper arm strength.

A worthy investment

Refinancing can be a complex process, but as long as you’re keeping your home up-to-date and doing your due diligence on the research front, you’re setting yourself up for success. No matter your reason for the refinance, it’s certainly a step in the right direction towards saving you time and money. Growing older doesn’t have to slow you down. Taking care of a house that no longer suits your needs can. Don’t let your house hold you back. Reach out to a professional to learn about your options for refinancing today.

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