Phoenix Relocation Guide

ACT I VE ADU LT S & S EN I OR L I V I NG

• What are the options for downsizing into a less expensive home, renting an apart- ment or moving into an assisted living or alternative senior housing community? Jumping into borrowing money for a reverse mortgage is not advised until looking into all of these senior living options. By being honest about current needs and housing trends and exploring all the options, seniors can rest easy that they have selected the best housing choice that fits their particular budget and lifestyle needs. Pack It Up: Being realistic about one’s life, finances and longevity is a must when deciding to move to another community. Retirees have to think about their health and future, and expand their thinking beyond the average life expectation. They need to consider the need to be close to hospitals and doctors that can provide them with the best care. They also need to inquire to see if the nearby doctors and hospitals accept their health insurance. Seniors need to take their medical concerns seriously when moving from a current circle of friends and commu- nity to a new area. This is where a real estate agent can really help a person or family trying to find a retirement situation. Real estate agents have access to the most current facts and figures to help seniors make an informed decision. Many who are making these decisions need to learn to be a little bit selfish. But selfish in a good way by moving to community or area that they love. Many seniors are downsizing their lifestyles and selling a home they’ve owned for 30 years. They are trading down in price range, want to be in a good area and need to select a home that’s a good investment for them. If their health is good, and they are reasonably active, they also will want an area with residents of a similar age and situation – just like them, their new neighbors have raised kids, have a variety of interests and plenty to talk about and can help each other. Why Not Both – Be a Snowbird: A third option is to enjoy nice weather all year long. If you enjoy or have ties to a northern region, that can still be home during that area’s best seasons. The ideal

Lifestyle Inventory: Active golf enthusiasts, for example, might want to live in close proximity to a local golf course. Those who want to use this time for community involve- ment might want to reside close by schools, churches or community center. While others who want to continue developing and pursuing an active lifestyle might want easy access to hiking and biking trails or fitness centers and the like. Again, being realistic on the front end helps determine smart choices that can only benefit later. Staying Put: Packing up and selling a beloved home with so many memories is a difficult decision for many longtime Arizona residents. One viable option open to senior homeowners is the reverse mortgage, which allows homeowners to turn the value of their home into cash without having to move or repay the loan each month. Guaranteed by the U.S. Department of Housing and Urban Development (HUD), HUD offers seniors a federally insured private loan as a way to provide financial security and supplement social security, meet unexpected medical expenses and make home improvements. The money from a reverse loan may be paid to the borrower in a variety of ways: a lump sum to a regular monthly cash advance, SHOULD YOU STAY OR SHOULD YOU GO?

a credit line account or a combination of the above options. Typically, borrowers do not have to pay anything back until they permanently move out of the home, sell it or die. Eligibility for most reverse mortgages requires that the home should be owned outright by the applicant and that the appli- cant is 62 years of age or older. A reverse mortgage offers retirees a distinct advantage. Since most lenders require that borrowers have some sort of income so they can determine a borrower’s ability to pay back the loan, many retired seniors simply cannot qualify for a traditional home equity loan. But a reverse mortgage does not require monthly payments, and therefore no minimum amount of income is required for the loan application. Most reverse mort- gages require no repayment as long as the owner or any co-owner lives in the home. The best way to determine if a reverse mort- gage is the best fit for one’s retirement plan is to honestly assess the following: • How much would the home sell for in today’s market? • What would the cost be to buy and maintain or rent a new home? • Would there be any money left over from the purchase of a new home that could be safely invested?

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