What is in your best interest when it comes to interest rates and choosing a mortgage?

By Korey Welch, Owner of Boom Realty 
and Senior Mortgage Broker, Loan Factory

For many people, retirement is a time to simplify, enjoy life, and feel secure in their finances. Yet for a growing number of seniors, buying a new home, downsizing, or refinancing an existing one still makes sense. Whether you are moving closer to family, buying a retirement condo, or unlocking equity in a longtime home, choosing the right mortgage is an important decision that deserves thoughtful consideration.
First and foremost, cash flow matters. In retirement, most people live on a mix of Social Security, pensions, and investment income. Unlike working years, there is usually less room for sudden increases in monthly expenses. When evaluating a mortgage, seniors should focus on how the payment fits comfortably within their monthly budget, not just what they technically qualify for. A slightly smaller loan with a lower payment can provide far more peace of mind than stretching for a larger home.
Another key factor is how long you expect to stay in the home. If you plan to live there for many years, a fixed-rate mortgage can offer stability and predictability. The payment stays the same, making it easier to plan long-term expenses. For those who may move again in a few years –perhaps to be closer to adult children or into a senior community – an adjustable-rate mortgage or shorter-term loan might sometimes be worth considering, though these come with more risk if rates rise.
Seniors should also look closely at their existing home equity. Many homeowners who have lived in the same house for decades have built up substantial value. This equity can be used as a down payment on a new home, reducing the size of the mortgage and lowering monthly costs. In some cases, selling a larger family home and buying a smaller one outright or with a very small mortgage can free up cash for travel, healthcare, or simply enjoying life.
One option unique to older homeowners is a reverse mortgage. These loans allow homeowners aged 62 and older to convert part of their home’s equity into tax-free cash without making monthly mortgage payments. While reverse mortgages are not for everyone and come with fees and long-term considerations, they can be helpful for seniors who want to stay in their homes and need extra income.
Healthcare and long-term planning should also be part of the decision. Medical expenses can increase with age, and having a large mortgage payment can put pressure on a fixed income. It’s wise to leave room in the budget for insurance premiums, prescriptions, and potential care needs rather than committing every available dollar to housing.
Finally, seniors should take the time to ask questions and get professional advice. A trusted financial advisor, housing counselor, or mortgage professional can explain options in plain language and help compare costs over time. The right mortgage is not just about interest rates – it is about comfort, security, and the freedom to enjoy retirement without financial stress.
With a little planning and the right guidance, a well-chosen mortgage can support a comfortable, confident, and worry-free next chapter of life.
Choosing a senior housing option is a significant decision that requires careful consideration of personal preferences, health needs, and financial factors. As a 25-year veteran of both the mortgage and real estate industries, I understand the complexities involved in making these transitions. My goal is to help individuals and families make informed decisions that promote quality of life, independence, and peace of mind throughout the aging journey.

Korey Welch, Owner of Boom Realty and Senior Mortgage Broker (NMLS: 14991) with Loan Factory (NMLS: 320841), is a licensed mortgage broker/real estate broker based in Rockland. For more than two decades, Korey has been helping seniors determine the best fit. For a complimentary consultation, contact him at korey@koreywelch.com, 781-367-3351.
If you have questions about building an ADU, navigating local zoning, or how it might affect your property value, I’m always happy to help. As a 25-year veteran of the real estate and mortgage business, I bring deep experience and a personal touch to every conversation.