Housing Counseling

• The U.S. Department of Housing and Urban Development trains, certifies and provides grants to approved nonprofit housing counseling agencies. These agencies act as advisors to homeowners in all stages of renting, buying and owning a home. These companies provide approved counselors who work with homeowners of all ages, including seniors. They review your situation, and provide a non-biased opinion of your mortgage options. If you cannot afford their services, they will reduce or eliminate their fees completely and still provide you the same service.
  
  

Paying Off the Mortgage

• Once you retire, your income typically becomes fixed. Social Security and pensions may not provide a lot of flexibility for expenses. Since 30-year mortgages provide a long amortization term, they usually provide more affordable monthly payments than a 10- or 15-year mortgage. But if you can plan to pay off your home before you retire, then a 30-year mortgage may not be the best option.
  
  

Other 30-year Mortgage Options

• Many lenders offer more than just fixed-rate mortgages for 30-years. Many lenders offer Adjustable Rate Mortgages (ARMs) and Hybrid ARMs. Traditional ARMs adjust annually and the interest rate and payments may move as much as 2 percent each year. Hybrid ARMs provide an initial fixed rate period where the interest rate and payment remain fixed for 3-, 5-, 7- or 10-years. A 5- or 7-year hybrid ARM may provide the stability of a 30-year fixed rate mortgage with a lower interest rate and payment. Once you approach the last year of the fixed rate period, you may refinance into another Hybrid ARM and lock the payment in for another 5- or 7-years.
  
  

Reverse Mortgage

• If married, and you and your spouse are both 62 years old, then you may qualify for a reverse mortgage if your home has sufficient equity. Your home does not need to be paid off to qualify. FHA insures reverse mortgages and approves the housing counselors and lenders required for this program. Once you close on a reverse mortgage, no payments are required. In fact, your home could make payments to you each month. You still retain ownership of the home and may will it to your heirs.