Why Mortgage When Downsizing? - Page 6

GenXmuse · ‎05-15-2016

@KarenQVC wrote:
@151949 I assumed you were doing it for the investment purposes, as you confirmed on this thread. You obviously have assets to manipulate.

There have been some people I know and on this thread who have done it for reasons I don't understand. Thus, the thread.

I'm just curious why you need to understand it. I don't really think about or know a person's financial situation and don't need to understand unless it affects me personally.

GenXmuse · ‎05-15-2016

@151949 wrote:
We have no one to leave our money to so why shouldn't we spend it to make ourselves happy? Heck, even if you do have kids - you should not live poor just to leave them a bundle.

What about your children?

tansy · ‎01-02-2011

@151949 wrote:
We have no one to leave our money to so why shouldn't we spend it to make ourselves happy? Heck, even if you do have kids - you should not live poor just to leave them a bundle.

What about your stepchildren and/or their kids?

Drythe · ‎07-09-2011

@151949 wrote:
Some of you are negatively judging others decision to get a mortgage as if they are making a poor financial choice. If they can comfortably make the payments it is not a bad financial decision at all.The only thing you can deduct from your taxes is mortgage interest. And they may have discussed this with their financial adviser and he advised that taking a mortgage is the better option over taking the money out of their savings investments. Being debt free may not be the best financial decision when all factors are taken into consideration. Since you can't know what another person's financial situation is - how do you think you can judge their decisions?

@151949

You should speak to your financial advisor again, if you think "the only thing you can deduct from your taxes is mortgage interest."

"Animals are not my whole world, but they have made my world whole" ~ Roger Caras

qvcfreak · ‎03-10-2010

I sold my big house and moved to my home town and built a much smaller home. Paid off all my bills and paid 1/3 of the house and I have a small mortgage for 15 years but I pay an extra $100 every month and will finish sooner. I built when I was 53 so I work part time for extras and have a good nest egg and my State pension. Lord willing I will get my SS. I am happy and very comfy.

Tinkrbl44 · ‎08-23-2010

@KarenQVC wrote:
@KathyPet My reason for asking this question is that some posters have expressed worry about their budget and whether one of them could take over the house if one of a couple were to die. I don't understand why they would take on stress just to get a bigger house.

PS: I do understand investment reasons, which I included in my first post.

@KarenQVC

That's why people get life insurance, and then they don't have to worry.

Evie2004 · ‎09-09-2010

@Mominohio wrote:
@truffle wrote:
@september wrote:
Mortgage interest is tax deductible, rates are still low (but starting to go up), and for many, the rate of return on investments is higher than what they pay on that interest.
Yes but one still has to come up with around $3000 each month to pay their loan (depending on where you live). Who cares about the tax deduction at that point.....not me! I want to be debt free when I retire.

Wow, I can't imagine living in a house that required a $3000 payment. In my area, with 20% down, you can live in the nicest of neighborhoods in a reasonably nice home for well under $1000 a month. Many moderately nice areas around here, less than half that. Around here, it doesn't pay to rent. You can buy three times what you can rent for half the price.

I think we are BOTH lucky to live in a state/ area where the cost of living is reasonable..where we live there are many homes valued at over $388,000,( pretty nice ones, 3500 sq ft & up) in fact the there are many home here valued at $2,000,000+ but also small, nice homes, in a great school district, that can be bought for $150,000. So, a great price range..apts are about $1000+ for 2 bedrooms

My husband & I are happy to live here mortgage-free, in our beautiful home..we can do whatever we want to do..we have 2 sons & they have families with no desire to inherit ours, thankful we don't live in the cities mentioned where you need a $3000. house payment..can't even imagine that!

hckynut · ‎03-10-2010

@KarenQVC

I can only speak for myself. I retired when I was 52/wanted the lower interest rate/more cash flow, and most of all, it was the best thing for us to do.

Downsize? Nah, we went from 1000sq.ft. to almost 3500sq.ft., including another almost 2000sq.ft. finished basement.

Downsize/Upsize.would make no difference to me. Lower interest rates and more cash flow for me(us). No kids, and even if I did have kids, what I earned would not go to them. They can make their own way in life if they use their brains in lieu of being instinctual.

Will leave my holdings to my wife, and should she go first? My estate would go to help homeless furry/four legged animals.

hckynut(john)

KathyPet · ‎03-09-2010

A house is not a liquid asset. Selling it depending upon market conditions can often be a long,drawn out process. IN my 55 and over community we went for a long time with no new homes being built because of market conditions. NOw we have a builder in here and resale homes are competing at a great disadvantage with the incentives the builder can offer plus buyers like the ability to choose all the items they want in a home from the builder design center. We have residents here who want to sell due to a decision to move to assisted living or a nursing home or who wish to move closer to grown children as they age. THey need the money from these homes to complete the move but they have no mortgage and have tied up a lot of cash in their homes without enough other liquid assets to complete the process. YEs, sure they had no mortgage payment to make so they felt secure in that aspect but now they are stuck here with no way out of the predicament they are in.

151949 · ‎03-09-2010

@KathyPet wrote:
A house is not a liquid asset. Selling it depending upon market conditions can often be a long,drawn out process. IN my 55 and over community we went for a long time with no new homes being built because of market conditions. NOw we have a builder in here and resale homes are competing at a great disadvantage with the incentives the builder can offer plus buyers like the ability to choose all the items they want in a home from the builder design center. We have residents here who want to sell due to a decision to move to assisted living or a nursing home or who wish to move closer to grown children as they age. THey need the money from these homes to complete the move but they have no mortgage and have tied up a lot of cash in their homes without enough other liquid assets to complete the process. YEs, sure they had no mortgage payment to make so they felt secure in that aspect but now they are stuck here with no way out of the predicament they are in.

I agree with this. We are nervous about selling our current home if we decide to move. Homes will sell if priced properly, but it's a guessing game what that price may be.