U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Delaware
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 01-24-2010, 11:53 AM
 
Location: Southern Maryland
124 posts, read 237,074 times
Reputation: 126

Advertisements

Mary 2014, Hi and you are so right that having to have a down payment and good credit should have ALWAYS been a requirement for home ownership! But the difficulty right now is that today's buyers are having lots of challenges obtaining a mortgage and that is having a direct and severe impact on today's home sellers. Hopefully our world will level out if we can ever get to the bottom of the big black hole of short sales and foreclosures that unfortunately we have in our local real estate market in Maryland (the top economist from the National Assn. of Realtors predicts the drop will stop perhaps sometime after 2012).

But to answer your question about a mortgage or no mortgage in retirement. For us, just like Charley, we plan to not have a mortgage. We, too, will be living on social security and a little bit more and it is absolutely imperative that we be debt free in order to make it all work (and we hope and pray it will work; we've worn out our calculator "crunching the numbers.") However we have already been approved for a mortgage (a 2nd home loan w/10% down payment from a credit union) because we will probably have to settle on our new home in Champions Club before we settle on our old house in Maryland. But who knows, we might get extremely lucky (blessed!) and perhaps we'll settle this home first and can come to the settlement table in DE with cash in hand. We chose to purchase the home in CC non-contingent to avoid having to move twice or put our stuff in storage. The $6500 tax credit and $1500 Energy Star appliance credit we're going to get will offset the mortgage fees that we may to pay for a mortgage that we hopefully won't own for too many months.
Reply With Quote Quick reply to this message

 
Old 01-24-2010, 04:27 PM
 
17 posts, read 32,342 times
Reputation: 21
I truly envy you all that will be able to do the mortgage free move... Unfortunately, had we not lost a significant amount in a long time business that went belly up, and then dealt with an emergency black mold renovation that ended up costing us $120,000. in a home equity loan, we would be among you! Fortunately, my husband is retiring from a public utility and has a healthy pension and 401K...so, even though we will not tap Social Security for 4 more years, we will can manage a mortgage comfortably. Will have to space out any major trips, but our lifestyle shouldn't be too hampered. Like Charley, my calculator needs to cool down from all the activity!

We have both got very stressful jobs and are eager to play that 'Take this job and shove it' song for our employers :-)

Just have to get through the stress of selling our home, praying for a buyer with good credit who can afford, and then a few months stint living at the daugher's....and we will be down.

Yes, our things must go in storage. This is the only fly in the ointment....but cash flow dictates it, and so we must cope!

Thanks for all your input, much is being learned!
Reply With Quote Quick reply to this message
 
Old 01-25-2010, 01:45 PM
 
Location: PA
53 posts, read 102,143 times
Reputation: 44
It's amazing that the question I was prepared to ask today was already posted. I too was planning on selling my current home and buying my new one outright. I was going to ask if that was what the majority of everyone was doing or if they were holding some of their profit back and taking out a small mortgage to add options on to their new home.
It can drive you crazy trying to figure out the best way of allocating your money and in today's economy the best plan for today can change overnight.
This forum is like an ongoing college course. I am always interested and appreciate the input and knowledge of the various individuals here. Keep the pipeline open.
Reply With Quote Quick reply to this message
 
Old 01-25-2010, 02:22 PM
 
Location: Delaware
388 posts, read 850,274 times
Reputation: 348
We have been without a mortgage for the past 15 years or so, so of course we don't want to be burdened with one in the future. We are expecting the proceeds of the current house to buy the new one but like you said you can go crazy trying to think of all the worst and best case scenarios of the transaction. I keep telling myself - and hubby - that this is our last house, have never had one built just for us, so there is the tendancy to "dream" a lot and want many options. But not carrying a mortgage is the most important thing to us, just don't want to go back to those days! We have the various models of the communities we like, play with the floorplans, add on this, add on that, and do a lot of erasing!! Yes, our calculator gets heated up, too. Worst case scenario for us, I believe, would be having to take a bridge loan for a couple of months. I could live with that if the time period was fairly short. The big thing in my pessimistic mind is wondering just how long it will take to sell our current home and then coordinating the new home's building timetable with ours. I forsee motel time in our future.
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 05:59 AM
 
135 posts, read 265,915 times
Reputation: 126
We too are planning on the mortgage free option. We intentionally scaled back our home options at CC so that we could do an even transaction with our current home. When we bought our home our interest rate was 16.5% (1981)! Because of the high rate at that time, we had to scale back our dream home and it worked out beautifully. We were able to pay it off in record time and have lived mortgage free for the past 20 years. The only way we would consider a mortgage is if we had a defined pension plan (which we do not). The stock market does not provide that comfort zone so we live cash only. We feel while it's fun to have a big beautiful house, it's more fun to take trips and go out to dinner!
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 09:46 AM
 
Location: Sunshine N'Blue Skies
13,320 posts, read 20,106,802 times
Reputation: 11645
I agree with you SusieC.......Being mortgage free is the best option for retirement. Also, like eggplant, we have been mortgage free for about 15 years. It is something I worked towards our entire home buying years. I never bought a home I didn't like......but I passed up many I suppose larger, and more grand. It was always more important to have my goal reached.

I hope the home market picks up for everyone. I know where my daughter lives in NY they hardly noticed any home selling problems. However in PA there are big pockets of homes that sit.
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 10:36 AM
 
19,922 posts, read 9,975,921 times
Reputation: 27341
Quote:
Originally Posted by Summering View Post
I hope the home market picks up for everyone. I know where my daughter lives in NY they hardly noticed any home selling problems. However in PA there are big pockets of homes that sit.
She's lucky, Summering. In our area, we've experienced a significant decrease in the value of homes along with very slow sales in most of 2009. One cause for this might be that our school district had a terrible tax case ruled against it that caused our annual school taxes to skyrocket. That situation is stabilizing but the damage is done.

I agree about being mortgage free. If one can swing it, it's the best way to be.
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 10:55 AM
 
Location: Sunshine N'Blue Skies
13,320 posts, read 20,106,802 times
Reputation: 11645
I think she lucks out because she is on top of a mountain in a development that is very much desired by people moving her way. This is her second home on that mountain and she has watched the homes sell quite fast.
Our area in PA has been really hit hard though. Our Monroe County taxes are high also, and its a big turnoff. Although they are less then NJ, and those are the buyers coming over to PA.
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 11:17 AM
 
19,922 posts, read 9,975,921 times
Reputation: 27341
The school tax situation in general is a tough one. As states continue to cut into funding for education, the homeowner and/or business owner continues to pay a larger share each year. But, that's a topic for another thread.
Reply With Quote Quick reply to this message
 
Old 01-26-2010, 08:13 PM
 
Location: Southern Maryland
124 posts, read 237,074 times
Reputation: 126
My hubby is interested in recommendations from DE residents (or soon to be's) about your choices for high speed internet connection, cable vs. dish TV, your cell phone company, hard line phone service (or if you even have it). We will need to make these tech decisions in a couple of months and are hopeful that some of you can share some advice/opinions, etc. This is so NOT my area of expertise or interest but we'll need these tools the day we move in. Thanks!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Delaware
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top