Written by Brett Harvey, VP of Mortgage Services at Family Trust
Housing is often the typical American’s greatest monthly expense, whether during retirement or during working years. If you happened to sign a 30-year mortgage in your 30s and made all your payments as scheduled, there’s a good chance your home will be paid off by the time you bring your career to a close. But what happens when you sign a 30-year mortgage in your 40s, yet want to retire in your 60s? If that’s the case, you risk entering retirement with mortgage debt.
For these reasons, Family Trust is happy to begin offering an Independence Mortgage. This type of mortgage is for members who want to finish paying off their home by retirement. Members that want a lower interest rate but don’t want to pay closing costs and don’t want to wait in line for a refinance should instead consider an Independence Mortgage.
Features of Independence Mortgage:1
- Low fixed rate for 7, 10, or 15 years
- No closing costs on loan amounts greater than or equal to $15,000
- No appraisal
- No pre-payment penalties
The primary advantage of paying off a mortgage prior to retirement is you’ll have less debt and more disposable income as a senior. This can be extremely helpful when you’re no longer working and are limited to a fixed income. It can also leave you with more room in your budget for other common expenses such as healthcare and leisure. Click here to learn more about our Independence Mortgages.
1 Must pay off any existing first mortgage. Family Trust will not subordinate. No closing costs with a Family Trust approved attorney. No appraisal fees. Family Trust will only pay closing costs every five years if you choose to refinance your current Independent Mortgage. Minimum 700 credit score. Max loan amount $150,000. Max Loan to Value $70%.