Retiring With a Mortgage

As we grow older, so do our parents.  As we move out from our childhood homes our parents have become DINKS-Again.  It is becoming more and more common for our parents to retire and sell their home for various reasons.

My father is currently thinking of downsizing. He says that it is because he is tired of the amount of work that it takes to keep a household and backyard up and running all year long. He also says that his mobility (at 57) is becoming limited, and he has pain in his knees as he walks up and down his stairs.  My Dad’s main reason for wanting to sell his home (which is not my childhood home) is the monthly cost.  He moved into my step mother’s house and she refinances her mortgage every 3 or 4 years when she needs extra cash.  I am not even going to get into the lack of financial knowledge by my step mother because as they say…Been there, done that.

My father would be happy to downsize to an apartment or condo from his current 2 story house.  I personally don’t think he will be happy because he loves to entertain, and he loves his space. But, my father knows what is best for him.  However, less space means less upkeep; and a smaller apartment means less work for him.  He is also considering moving to Florida or Arizona…we will see how that works out.

I think it will be ok if my father decides to rent an apartment because it is carefree living, and it will be a lot cheaper every month for him. However, owning a condo is definitely not for him. It will still be work since he will be responsible for all the upkeep inside the condo.  It will be less work, but it will still be work regardless.  The equity in my father’s house is not enough to pay off the existing mortgage and buy a new condo. They will be able to use the money from the sale of their current home for a down payment…but that’s about it.

My mother couldn’t be more opposite than my father, hence the divorce. My mother and her boyfriend currently live in the townhouse that she purchased after the divorce from my father. Now, she wants to move out of her gated community townhouse and buy a home with a large backyard, and possibly a pool.  My mother is (not so secretly) hoping that she will need the extra bedrooms because my sister and I will soon be moving closer to home and having grandchildren.  I don’t have the heart to tell her that I highly doubt this is going to happen anytime soon; so she shouldn’t spend money on hopes and dreams.

My aunt told me that she never plans to sell her home. She does not want to downsize even though the upkeep of her 3 storey, 5 bedroom, 3 bathroom home is a lot of work.  My aunt’s home is in a fabulously overpriced neighbourhood and her mortgage is completely paid off. She would make a killing if she did sell it. She doesn’t want to sell her house because my cousins would be very upset if she sold their childhood home. Instead she redecorates every 4-5 years and it’s like moving, but without the hassle.

When your parents retired did they downsize, upgrade, or stay in their current home?

(Photo by BrayDawg)