Seniors may want to consider downsizing to apartment

With their children having left the nest, many older homeowners consider whether moving to a smaller home is the best option for them. A new report suggests that moving into an apartment, rather than buying a smaller home, might be a smarter downsizing option.

Senior Housing News reported that many Baby Boomers and older Americans are considering moving into an apartment once their children have left the nest. In that past, many more people might have seen purchasing a new, smaller home as a smarter investment, since it might allow them future financial opportunities such as Home Equity Conversion Mortgages. But fewer older Americans today view homeownership as the investment tool it once was, said the report.

Moving into an apartment may be a better downsizing option for many because of favorable rental prices. However, the report cautions that while investment opportunities might not be as plentiful as they once were, older Americans might still want to consider moving into a smaller home given that low mortgage rates and falling home prices have made buying a home more affordable than it has been in years.

In fact, Freddie Mac reported that mortgage rates this past week held steady at near record-low rates. Older homeowners moving into a new home with a 15-year mortgage would pay an average interest rate of 3.82 percent.
 

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