- While home prices continue to climb upward, the average interest rate on a 30-year mortgage is low by historical standards: just below 3%.
- If your tax returns don’t show enough income to qualify for a mortgage, you might be able to temporarily tap your retirement account to prove you can afford the loan.
- Another option may be to qualify based on assets in that account, or explore “pledging assets” to make the purchase.
If you’re retired and are thinking about downsizing or relocating, and it involves buying a home, you might want to look into how you would finance it.
You may discover that qualifying for a mortgage is different from the last time you bought a house. Not only have lenders tightened credit during the coronavirus pandemic, retirees generally have left a steady paycheck behind.
It can be tricky for retirees to get