I have been working with several buyers lately planning their purchases with retirement in mind. I have been impressed at how purposeful they are… even more so because they aren't all thinking about retiring soon. Their plans are as different as their situations. Here are some examples…
- 15 year mortgage – planning ahead to have mortgage paid off when they retire in about 15 years
- 30 year mortgage – paying extra principal each month to pay off early, but keeping the option for lower payments when needed
- 5 year Contract for Deed – planning ahead to have home fully paid for when she retires in 6 years
- Cash – selling current home and using proceeds to pay cash for downsized home
- Equity line of credit – using equity line of credit on current home to pay cash for less expensive home now… then paying it off after selling current home
Creative combinations and solutions abound… the most important part is thinking through what could work for you, then exploring options.
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