Ep 80: Mortgage Strategies for Moving in Retirement

Your home is likely your largest monthly expense. And if you are looking to buy a new home, especially near retirement, there are ways to lower that cost. In this episode, Tom Cramer from Wintrust shares insight on getting a good interest rate, non traditional financing, and even loan programs you could qualify for.

Take a listen right here, or watch on YouTube!

Takeaways

• Get pre-approved before house hunting. A strong pre-approval and a lender who can speak with the seller’s agent can help make your offer more competitive.
• Prepare for a competitive market. Sellers may favor cash or non-contingent offers; some buyers may need to consider an appraisal-gap waiver only if they can cover a shortfall.
• Ask about down-payment assistance early. Programs vary by location, income and available funding, and some funds can run out during the year.
• Review your credit before applying. Check your credit report, keep card balances low and address errors or small collections; these factors can affect your mortgage rate.
• Compare the full loan cost, not just the rate. Ask lenders for different options and review the loan estimate, including fees and closing costs.
• Don’t make a home decision based on today’s rate. Consider the home, your plans and the costs of refinancing; refinancing only makes sense if the savings outweigh the costs over the time you expect to stay.
• Choose home-equity financing to match your need. A fixed-rate second mortgage may suit a known expense; a HELOC offers flexible access but its rate can change, and interest-only payments may not reduce the balance.
• Plan ahead if you’ll move near retirement. Buying before retirement may make financing simpler, while some lenders can also use eligible retirement assets to help retirees qualify.
• Keep a financial cushion after closing. Budget for the down payment and closing costs without wiping out all your savings.
• Talk with your lender and real estate agent before your circumstances change. Changes in employment or income can affect mortgage eligibility, so raise them early.

Related Links for Mortgage Strategies

Our guest today was Tom Cramer, a Senior Mortgage Loan Officer at Wintrust.

• Use Tom Cramer to help you get a mortgage loan from Wintrust.
• Connect with Tom Cramer on LinkedIn or on Facebook.

Listen to our past interviews with Tom to hear how much has changed!

• September 2024: What Can I Do With My Mortgage?
• October 2023: What Homebuyers Need to Know About Mortgages
• May 2020: Insurance Industry Updates During COVID-19

Additional FDS Resources on home ownership:

• Video: Getting a Mortgage As a First Time Homebuyer
• Video: Should You Refinance Your Mortgage?
• Article: Is the Housing Market Going to Crash in 2022?
• Article: It’s a Home Seller’s Market in 2020
• Podcast: Should I Buy or Rent a Home (or Build)?
• Podcast: How to Finance Your Summer Home Projects

Episode 80 Timestamps:

• 0:55 Meet Tom!
• 2:20 What has changed with homeownership in the last few years?
• 8:20 What loan assistance programs are available?
• 14:03 What should borrowers expect?
• 17:28 Should buyers wait for lower rates?
• 26:24 How do you know you have a good interest rate?
• 28:46 When should you refinance your loan?
• 34:20 What kind of non-traditional financing are you seeing?
• 39:56 What do retirees need to know before purchasing a home?
• 46:46 What advice do you have for homebuyers?

Credits for Episode 80

Host: Michelle Smalenberger, CFP®

Guest: Tom Cramer

Executive Producer: Anna Lewis

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