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Old 08-04-2017, 07:40 AM
 
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The goal should be zero debt when you retire. Cash should be used in maintenance of house,vehicles,etc.
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Old 08-04-2017, 07:50 AM
 
Location: Ohio
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For a mortgage in retirement - do pension and/or social security qualify as income streams?
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Old 08-04-2017, 07:54 AM
 
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yes , so do annuity payments . they count any income not under your control
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Old 08-04-2017, 07:57 AM
 
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Quote:
Originally Posted by mortpes View Post
The goal should be zero debt when you retire. Cash should be used in maintenance of house,vehicles,etc.
be careful with general statements . the worst thing you can be is house rich and cash poor in retirement .

having that extra cash in an account and not tied up in the house inaccessible without incurring charges can be a far greater benefit at times. especially when the pay checks stop . when emergencies happen you can't sell the living room .
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Old 08-04-2017, 08:00 AM
JRR
 
Location: Middle Tennessee
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Quote:
Originally Posted by mortpes View Post
The goal should be zero debt when you retire. Cash should be used in maintenance of house,vehicles,etc.
Debt doesn't really bother us; if someone wants to loan us cheap money, why not take advantage of it? I'm happy with a 15 year mortgage at 3.25%, a 66 month auto loan at 1.9% and I just borrowed $15k for a year at a flat $99. Using borrowed $ has allowed me to just take spousal benefits and let my Social Security keep accumulating until I am 70.

But what is good for me may not be good for someones else's circumstances. Everyone has to work with what makes them comfortable.
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Old 08-04-2017, 02:15 PM
 
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Debt is a tool. Kind of silly not to use it when and where appropriate. Meanwhile, we've been retired for six years, and the 10-year draw period on our $200K home equity line expired two years ago. We simply applied for a replacement. No muss, no fuss, no bother. It did take take a good while to get to settlement, but that was due to the volume of such business they were doing.
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Old 08-04-2017, 03:06 PM
 
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an equity line of credit IS A LOAN . the same as any loan . you may have used the house as collateral but you still can't get the money out once it goes in . you must take a loan to get at that money . in fact if you can borrow against your looks or portfolio you can borrow the same money with no house .

that is the problem with equity once you have it tied up in a house . cash flow may end up being more important . 2008 saw equity lines of credit killed all over the place just as folks lost their jobs .
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Old 08-05-2017, 08:16 AM
 
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Our house has been paid-off for a couple years. It's a nice feeling. But I would not hesitate to take out a mortgage if we needed/wanted to move elsewhere. The caveat is that I would not hesitate to take out a reasonable mortgage, relative to our income. I see the size of some mortgage payments and I shudder.
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Old 08-05-2017, 11:24 AM
 
Location: Close to an earthquake
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Some of the most financially-comfortable people I've met are debt-free, more than those having big investment accounts. Of course, both are possible but there's a big segment of retired society that didn't grow up with investment accounts.

What I've noticed is that many who are invested in the market sure spend a lot of time following and worrying about their investments so their financial comfort comes at a price.
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Old 08-05-2017, 11:32 AM
 
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Originally Posted by mathjak107 View Post
yep , getting mortgages can be a problem when you retire. especially if you delay taking ss .

most buyers of mortgages from the banks will not take asset based loans , only income based.

we would like to go the other way . we want a mortgage in retirement if we buy a co-op next year . if we pay cash , once that money goes in to equity buried in the house there is no way we can make use of it except by taking higher priced loans .
Math jack is so right about this. Since retiring, I have been refused mortgages for homes due to no income, even though I had liquid assets to pay for the homes many times over.
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