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We had a paid off house, sold it, moved, bought a more expensive house, sold it, moved again and have an even more expensive house. Everything is about what your budget will allow.
Paid off my home 12 years ago. Sold that home of 34 years and moved into a +55 community. Planned on taking a mortgage of $400,000 on a $600,000 home at <3%…..cheap money. Build was delayed and at closing we were looking at +5%. Paid cash. It’s all about the money.
Retired with a paid off house. Fast forward 9 years and got a divorce. Decided to take a small mortgage on the condo I bought because interest rates were so low.
For those on a modest fixed income of SS and maybe some savings, I don't see how they can handle a mortgage along with regular monthly expenses. I really don't. I found health insurance to be the biggest kicker. And what are you going to do if you need a new car, a new roof, or have other major expenses such as dental work?
depends if they have the money to pay off the mortgage if they wanted to .
many retirees choose to keep their own money invested and generating more income which exceeds the interest payments while using other people’s money to tie up in the house .
but for someone with no extra money invested and a mortgage, that is just an under funded retirement situation and they have no option to pay off the mortgage or generate more income
I would be reluctant to take money out of investments to pay off the mortgage. When interest rates were below 4% for a fifteen year loan that was a green light. Now that interest rates are higher the decision is tougher.
Variables are numerous: interest rate, equity, market value, length of time remaining on the loan, personal or family circumstances, etc.
depends if they have the money to pay off the mortgage if they wanted to .
many retirees choose to keep their own money invested and generating more income which exceeds the interest payments while using other people’s money to tie up in the house .
but for someone with no extra money invested and a mortgage, that is just an under funded retirement situation and they have no option to pay off the mortgage or generate more income
This...so much this. We don't even have a lot in our IRA, but it is an income fund, and dividends from it completely cover our monthly house payment. It's definitely not worth drawing from it to pay off the house...since it already is!
Is it still possible to retire with a mortgage? How?
Of course it is possible. Many of us on this forum have mortgages in retirement. You are not the first to raise the topic, you know.
"How" was that when I bought my condo at the age of 51, knowing I would be retiring in a few years, I made sure I bought within a range wherein I could make mortgage payments on my pension. IOW, i based my purchase on my anticipated retirement income, not my working income.
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