The pros and cons
of financing a home in retirement By John Costigan
PAYING INTEREST TO ONESELF It mainly happens with 401k loans. Administrators give reasonable rates. Paying interest to oneself means that since 401k assists in value lost by removing money from your 401k for a few years. The method is also classified as reverse paying o paying mortgage rates. ONE CAN AVOID PAYING PMI Buying a home without a 20% down payment leads to costly PMIs. However, older couples may have money in their retirement savings account, which enables them to have the minimum down payment required. Thus, seniors
must start saving early for their retirement home to avoid strains at old age. A HOME IS A GOOD INVESTMENT Getting a home is an investment worth considering. A house situated in a hot market leads the buyer to make considerable profits in the later years. Also, people think leaving behind an inheritance for their children makes homeownership a good idea. It is also worthwhile considering that home appreciation value also depends on the real estate market of a given state. STABILITY AND CONTROL OF A HOME With a rental home, there are chances of rent increment, and the renter has no control over the issue. Also, one cannot remodel a house according to how one would want it unless one AUGUST 2022 | 103
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ome people opt to get home way after they retire. Doing so may be of an advantage or disadvantage. Merits include;
