Good discussion, thank you. There were a lot of things talked about which I hadn’t considered when making my plan regarding paying off my mortgage by retirement.

@Dolphinfinancialgroupfl

Жыл бұрын

Glad you were able to learn something useful from it!

I want my mortgage paid off ASAP- I would rather have ZERO DEBT...

@Dolphinfinancialgroupfl

11 ай бұрын

This is the common approach to a mortgage in retirement.

@philjans1

Ай бұрын

Last thing I want to do is die wasting a million dollars in a morgage free house. I want to be able and enjoy that earn money while I am alive and not having a bank or someone selling it after I die and pocketing the million. Now: reverse morgage are terrible so what options is left 🤔

With all the deed fraud going on with paid off properties it seems to me a mortgage helps protect one from potential fraud.

Everyone's situation is different, Here's ours... we refinanced our mortgage three years ago at 2.5%, right before rates started climbing, and got rid of a $100K interest-only balloon HELOC in the process. It would be stupid for us to EVER pay off our home when we hold a very low-cost fixed-rate mortgage on it. Plus, the home's value has gone up over 150% in the past 6 years, so we have a TON of equity we could tap into in the unlikely event we ever needed to. By NOT paying off our dirt-cheap mortgage, I can keep that $330K fully invested and earn a LOT more than 2.5% per year on it. In fact, we have that money in SWVXX right now and we earn over 5% per year on it, with ZERO risk.

@Thisishard2333

7 ай бұрын

Same here. It’s a no brainer.My interest pays all of my mortgage and real estate taxes.Preserving our capital.

@SeriousSchitt

4 ай бұрын

Yeah, but what if your mortgage commands 8.5% interest, like mine currently does?

@kencarp57

4 ай бұрын

@@SeriousSchitt Wow... at 8.5%, you are in a completely different scenario. It would make sense to pay off that high-rate mortgage if funds are available.

@philjans1

Ай бұрын

How would you tap in the « 150% value increase… ton of equity »? How did remortgaging the house gave you money? Tx foe the info.

If your Mortgage is less than renting in your local market, then that is ok. In Canada.

Listen to the Ramsey show 7 baby steps and it’s all good 🤔😉💰😁🥂🎉

Our solution was to downsize, then a reverse mortgage line of credit. We quickly paid off the Reverse with Cash, except for $500 to keep the line of credit open. That line of credit is currently growing at 6.7%. Our plan is to only use it for a true emergency in the first years, then downstream in 10-15 years, as a portfolio backup, and ultimately for LTC needs. The initial cost of the mortgage was $10k., the current annual fees are about $25. We are NEVER required to make a payment till we both die should we use the money. The Reverse(a HECM) can’t be cancelled. Our current LOC is about $250k and should double in 10-12 years. Having no mortgage means our monthly outlay for everything including some discretionary spending will be covered by Social Security only. We can then maintain a relatively aggressive portfolio allocation, with no personal financial risk.

@Dolphinfinancialgroupfl

6 ай бұрын

Sounds like you've got something that works in your situation. The HECM is a very misunderstood financial tool. It's actually vilified for reasons that were corrected long ago.

Main point up front. Your standard. The standard deduction is so high so you can't deduct interest. So why not extinguish the mortgage.

going into retirement i bought a house/. duplex in which i live in one and the other is rented . so i have a mortgage with carrying costs about the same as the rent i receive. So having a mortgage allowed me to buy a house. I have Company pension secure, investments / stocks, ETFS creating . Dividend income each month about the same as the mortgage payment.

@Dolphinfinancialgroupfl

Жыл бұрын

Do you enjoy being a landlord and do you see this arrangement continuing indefinitely?

What if you have a lot income 457B, VA disability, and Army Reserve retirement. I was thinking pull my deferred comp and pay off house.

@Dolphinfinancialgroupfl

4 ай бұрын

You'd face a steep tax bill if you did that. It requires some number crunching to answer your question.

Mortgage interest= mortgage interest+ tax bracket payment puts you in probably not less than 10% to fed plus state tax good luck making that in the stock market.

Last thing I want to do is die wasting a million dollars in a morgage free house. I want to be able and enjoy thst earn money while I am alive and not having a bank or someone selling it and pocketing the million. Now: reverse morgage are terrible so what options is left 🤔

@Dolphinfinancialgroupfl

Ай бұрын

There are several ways to tap into your home equity. Do you have experience or research regarding your claim about reverse mortgages being terrible?

@philjans1

Ай бұрын

@@Dolphinfinancialgroupfl I stop when I understood they gave 50% of its current value. That, as a starter , is really low. And this is « current value »: so it doesn’t take into consideration what the house will be worth 15-20 years later when death of the owner. A heloc is better to start with , but not by much. So still searching

Good take gentlemen. My plan is sell my home in Nevada take the cash and buy 4 Plex in Dominican republic for short term rental income to live on along with ira's and SS. Makes more income than renting my house out.

@Dolphinfinancialgroupfl

Жыл бұрын

Do you plan to live in the fourplex or rent elsewhere?

@lylerobinson3515

Жыл бұрын

@@Dolphinfinancialgroupfl stay in 4 Plex for a year and manage it. Than I turn 59.5 and I can draw from retirement accounts accumulate enough to buy a private villa there as well. 4 Plex is 250k new build with 4 2bd 1bath units with big rooftop palapa with bbq area.

I totally understand the conundrum of using your savings and paying off a debt. The best way to do that would be the pay off a line of credit so that you can use that money again, whereas with a mortgage you never get that money back unless you take out a home equity line sell your home. Also the true interest rate on a mortgage even a so-called 3% is actually closer to 50% or above because it's amortized. Using a heloc and velocity banking is really the best way to pay off your mortgage.

I am 63, paying down my mortgage while working, however I will will still owe maybe two years after retirement. However, at house interest rate 5 % fixed rate plus a tax write off, I am not worried. I don't want to house poor. And also I just took out a 5% CD with my IRA money.

There is no CD paying 5%

@EdwardAndersen

7 ай бұрын

There are plenty of banks paying 5% or more. I buy my CDs through Fidelity.

@winniethepoohandeeyore2

2 ай бұрын

Yes there are

Debt Free is the way to be when retired. Stop telling me how to spend My money.

These guys are goofy