As a mortgage loan originator, you’re used to guiding clients through the home loan — process whether they’re first-time buyers or more seasoned homeowners. However, no matter where they are in their homeownership journey, your borrowers will likely lean heavily on your mortgage expertise every step of the way.

If you frequently assist borrowers nearing retirement age, especially baby boomers born between 1946 and 1964, you’ve probably encountered quite a few clients working towards paying off their debts before they fully embrace their golden years.

For many almost-retirees, their homes might account for a huge chunk of the wealth they’ve accumulated over their lifetime and, according to Annuity.org, 76 percent of retirees said they wanted to remain in their current home for as long as possible. If you’re working with borrowers who are considering a refinance before or during their retirement, here are some high-level talking points:  

Understand the Borrower’s Goals

Are they looking to leverage their home’s equity through a refinance to grow their retirement nest egg? Or refinance for a lower monthly payment and use the surplus monthly income to pay off other debts? Perhaps even refinancing to shorten the loan’s term to potentially cut years off the note? As clients near retirement, their financial goals and motives might begin to shift. Whatever their reason for considering a refinance, it’s important to discuss the following factors.  

Important Considerations for Borrowers

Every situation is unique, and the borrower’s individual retirement goals will greatly influence their decision about if refinancing makes sense for them. Some key topics to discuss are the amount of time left on the mortgage term, their retirement timeline, how long they intend to remain in their current home, weighing the upfront costs associated with the refinance process and their overall retirement financial goals. While a refinance might not make sense for every borrower, as an experienced mortgage loan originator, you’ll be able to help clients weigh the pros and cons of a refinance to see if it aligns with their financial goals in retirement.