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Downsizing to mobile home may be wrong move

Older couple concerned about existing mortgage, retirement
Published on Oct 17, 2005

DEAR BOB: My wife and I are in our late sixties. We have lived in our house for 33 years. But it still has a mortgage because we refinanced over the years to pay for remodeling and upgrades. We lost most of our IRAs to the falling stock market in 2000. Our biggest asset is our home equity. We are thinking of selling our house and buying in a senior mobile home community. We could buy a mobile home and still have enough money to meet our expenses. Is this a good thing to do? – Robert E. DEAR ROBERT: If you have at least 60 percent equity in your house, you might consider obtaining a reverse mortgage to pay off your existing home loan in a lump sum so you can afford to stay in your current house. Then you would have no monthly payments. Purchase Bob Bruss reports online. That would be much better than downsizing and giving up your home, which is an appreciating asset. Mobile homes usually depreciate in market value, just like your car, rather than appreciating in market value. ...

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