Getting a mortgage in retirement - Page 2

Bri36 · ‎02-20-2017

I'm sure your dad has talked with his financial advisor and the people at the bank about all of this.

ccassaday · ‎10-21-2010

@AuntG wrote:
Who would seriously want to take out a mortgage in retirement? It happened to a pastor I know. His housing was always covered by the church, but once he retired, he decided to build his dream home. At age 85, he still has house payments and property he can no longer maintain.

If your investments are making 5% the interest you get from having say a million in the account pays for that mortgage. Why would you take the money and pay cash and 30% tax on it when it can be making money for you.

ccassaday · ‎10-21-2010

I am sure the credit union has gone over everything with them. It was just something I was reading when using your monthly retirement as income. It was saying you had to show it as being deposited for two months. The financial advisor was supposed to send something over showing the amount they will be getting every month.

151949 · ‎03-09-2010

@ccassaday wrote:
@AuntG wrote:
Who would seriously want to take out a mortgage in retirement? It happened to a pastor I know. His housing was always covered by the church, but once he retired, he decided to build his dream home. At age 85, he still has house payments and property he can no longer maintain.
If your investments are making 5% the interest you get from having say a million in the account pays for that mortgage. Why would you take the money and pay cash and 30% tax on it when it can be making money for you.

When we bought our trailer we intended to use earnings from our savings to pay cash for it. Our financial advisor said no - use a home equity line - deduct the interest and I'll make more for you on the money left with me than the interest you'll pay - he was absolutely right. It was great advice.

ccassaday · ‎10-21-2010

@151949 wrote:
@ccassaday wrote:
@AuntG wrote:
Who would seriously want to take out a mortgage in retirement? It happened to a pastor I know. His housing was always covered by the church, but once he retired, he decided to build his dream home. At age 85, he still has house payments and property he can no longer maintain.
If your investments are making 5% the interest you get from having say a million in the account pays for that mortgage. Why would you take the money and pay cash and 30% tax on it when it can be making money for you.

When we bought our trailer we intended to use earnings from our savings to pay cash for it. Our financial advisor said no - use a home equity line - deduct the interest and I'll make more for you on the money left with me than the interest you'll pay - he was absolutely right. It was great advice.

That was my parents plan. They were going to pay cash for the house. Financial advisor talked them out of it.

I guess my main question is if the income isn't going to start coming in until August 1st it won't show up on the two months bank statements. I was just wondering because of what I have reading if it has to be on there as a deposit or does a letter from financial advisor stating when it starts and how much all that is needed.

Lynnster67 · ‎08-18-2015

It depends whether you're looking for a traditional mortgage or a reverse mortgage (for ppl aged 62+).

If you're looking for a reverse mortgage, you have the option of taking a lump sum or as a line of credit. The upfront fees are significant and you're required to take a financial counseling course to make sure you understand that you're still on the hook for taxes, insurance, and HOA/condo assessments.

RespectLife · ‎02-27-2012

@ccassaday wrote:
I am sure the credit union has gone over everything with them. It was just something I was reading when using your monthly retirement as income. It was saying you had to show it as being deposited for two months. The financial advisor was supposed to send something over showing the amount they will be getting every month.

@ccassaday

I can only speak for our circumstance. A letter from your advisor or an accountant would not be acceptable in NYS.

My DH retired from NYS. The New York State Teacher's Retirement provided a document showing exactly how much would be deposited each month. It HAD to come from the one actually PAYING the retirement.

But as others have stated, your lender should be telling you exactly what you need to provide for documentation. Every state and every lender may have their own set of requirements and acceptable documents.

We are taking a mortgage at this age because financially, it is the smart thing to do.

Our accountant reamed me up and down years ago when I paid off the previous house mortgage. And every year, when I wrote a large check for yet still MORE taxes due....I knew he was right.

We need the tax deduction and the mortage rates are still low! Your early years in a mortgage is paying mostly the INTEREST so the deductibility is high.

Why pay cash and then let the government (esp. NYS eat us alive every April!!)

We have paid enough taxes all these years to support a small nation! LOL

ccassaday · ‎10-21-2010

ccassaday · ‎10-21-2010

@RespectLife wrote:
@ccassaday wrote:
I am sure the credit union has gone over everything with them. It was just something I was reading when using your monthly retirement as income. It was saying you had to show it as being deposited for two months. The financial advisor was supposed to send something over showing the amount they will be getting every month.
@ccassaday

I can only speak for our circumstance. A letter from your advisor or an accountant would not be acceptable in NYS.

My DH retired from NYS. The New York State Teacher's Retirement provided a document showing exactly how much would be deposited each month. It HAD to come from the one actually PAYING the retirement.

But as others have stated, your lender should be telling you exactly what you need to provide for documentation. Every state and every lender may have their own set of requirements and acceptable documents.

We are taking a mortgage at this age because financially, it is the smart thing to do.
Our accountant reamed me up and down years ago when I paid off the previous house mortgage. And every year, when I wrote a large check for yet still MORE taxes due....I knew he was right.

We need the tax deduction and the mortage rates are still low! Your early years in a mortgage is paying mostly the INTEREST so the deductibility is high.

Why pay cash and then let the government (esp. NYS eat us alive every April!!)

We have paid enough taxes all these years to support a small nation! LOL

I guess we will see what happens. There's is set up to receive a guaranteed amount for life. They will be getting the money directly from their financial advisor I think. They had to provide all the banking info to them for direct deposit. So I think they are the ones directly paying it. They have sent in all their documentation the credit union asked for. We should be hearing from them anytime. The appraisel is done.

ccassaday · ‎10-21-2010

I guess my big question will the loan not be able to close until they show those annuity payments on two months bank statements. Or will a letter stating they start August first and the amount be sufficient.