how big of a mortgage will i be able to afford if …….

[HLS]

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[HLS]

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[(former)FormerSanDiegan]

Adam and Eve …. There was that slimy apple salesman who convinced Adam into buying the apple on layaway. Talk about the deal of all time. We’re still paying for it.

[(former)FormerSanDiegan]

Adam and Eve …. There was that slimy apple salesman who convinced Adam into buying the apple on layaway. Talk about the deal of all time. We’re still paying for it.

[CBad]

Just curious why you are interested in having a new mortgage at your age? You said there was no penalty withdrawing from your retirement funds so I have to assume you are at least 59.5. I hope you are looking for a 15 year loan at least? To each their own but I would never want the burden of a mortgage in my 60’s, 70’s, etc.

[CBad]

Just curious why you are interested in having a new mortgage at your age? You said there was no penalty withdrawing from your retirement funds so I have to assume you are at least 59.5. I hope you are looking for a 15 year loan at least? To each their own but I would never want the burden of a mortgage in my 60’s, 70’s, etc.

[HLS]

CBAD…
When I am in my 70’s-80’s I want to have as much debt as possible, with a pile of money rolling in from investments every month, so I can do whatever I want and give money away as I choose..

What I don’t want is to be living in a box that is worth $2 or $3 million and own it free and clear.

When you can lock in a long term interest rate and end up paying it back in cheaper dollars why tie up cash now ?

I’d say that it’s very possible that in the next 10-15 years, you will be able to safely earn 8-10% from bank interest, and have a 6% or less mortgage.

I’d like to have as much manageable debt as possible out there and have money available to enjoy my life now, while I can.

I think that 15 YR loans and paying down a mortgage fast is a foolish thing to do for most people. Too many people are a slave to their mortgage.

If you have regular monthly income, and monthly debt is under control, who cares.

I have studied the value of time and money over many years, I don’t think that most people get it.

I’m not waiting until I’m in my 60’s to start enjoying life. I wanna die with debt, not $5 million tied up. Just my 2c.

[HLS]

CBAD…
When I am in my 70’s-80’s I want to have as much debt as possible, with a pile of money rolling in from investments every month, so I can do whatever I want and give money away as I choose..

What I don’t want is to be living in a box that is worth $2 or $3 million and own it free and clear.

When you can lock in a long term interest rate and end up paying it back in cheaper dollars why tie up cash now ?

I’d say that it’s very possible that in the next 10-15 years, you will be able to safely earn 8-10% from bank interest, and have a 6% or less mortgage.

I’d like to have as much manageable debt as possible out there and have money available to enjoy my life now, while I can.

I think that 15 YR loans and paying down a mortgage fast is a foolish thing to do for most people. Too many people are a slave to their mortgage.

If you have regular monthly income, and monthly debt is under control, who cares.

I have studied the value of time and money over many years, I don’t think that most people get it.

I’m not waiting until I’m in my 60’s to start enjoying life. I wanna die with debt, not $5 million tied up. Just my 2c.

[(former)FormerSanDiegan]

Interesting point CBad. Suppose you have 1.5 Million in retirement assets when you are 64 years old. You are purchasing a 350K property. You have another 70K saved up for a downpayment. If the retirement account is tax deferred, you can either withdrawal about 500K from your retirement account all at once in order to cover the purchase and taxes on withdrawal … at some of the very highest tax rates. OR you can withdrawal about 20K per year to pay the mortgage at more modest tax rates. Why wouldn’t you take out a mortgage in that situation (assuming the lender will do so). Also, this way you let the bank take some risk. If you croak before paying off the loan and the house is underwater the bank loses and your heirs win. If the house is worth significantly more when you croak, your heirs win again.
Again, this only makes sense when the monthly costs of purchasing approach monthly costs of renting (not there yet in San Diego).

[(former)FormerSanDiegan]

Interesting point CBad. Suppose you have 1.5 Million in retirement assets when you are 64 years old. You are purchasing a 350K property. You have another 70K saved up for a downpayment. If the retirement account is tax deferred, you can either withdrawal about 500K from your retirement account all at once in order to cover the purchase and taxes on withdrawal … at some of the very highest tax rates. OR you can withdrawal about 20K per year to pay the mortgage at more modest tax rates. Why wouldn’t you take out a mortgage in that situation (assuming the lender will do so). Also, this way you let the bank take some risk. If you croak before paying off the loan and the house is underwater the bank loses and your heirs win. If the house is worth significantly more when you croak, your heirs win again.
Again, this only makes sense when the monthly costs of purchasing approach monthly costs of renting (not there yet in San Diego).

[CBad]

Like I said, to each their own. This is coming from someone who will have their house paid off at the age of 34. I have plenty invested and I’ll invest plenty more with each of my monthly non mortgage payment.

[CBad]

Like I said, to each their own. This is coming from someone who will have their house paid off at the age of 34. I have plenty invested and I’ll invest plenty more with each of my monthly non mortgage payment.

[HLS]

CBAD,,,

At your age, I’d say that is a silly thing to do, but it’s your choice.
A home goes up or down regardless of what you owe on it.

Being all in creates a terrible return considering that leverage is available at the cheapest possible rates on your primary residence.

Over time, you may end up with $10 Million, which is great.
However,
If that money tied up in your stucco box was invested wisely elsewhere, you could end up with $15 million.

(I probably don’t know what I’m talking about though)

[HLS]

CBAD,,,

At your age, I’d say that is a silly thing to do, but it’s your choice.
A home goes up or down regardless of what you owe on it.

Being all in creates a terrible return considering that leverage is available at the cheapest possible rates on your primary residence.

Over time, you may end up with $10 Million, which is great.
However,
If that money tied up in your stucco box was invested wisely elsewhere, you could end up with $15 million.

(I probably don’t know what I’m talking about though)

[SD Realtor]

I agree to each his own… Having kids I choose to leave them valuable assets so I am kind of on board with CBad as well… Again though it is a choice so I respect the other side of the coin…

Pert, I think that when you come here in the spring of 08 it will be a great opportunity for you to sign a 1 year lease and get a feel for what you really want. There is no rush or hurry. Also the longer you can show W2 wages the better it will be for when you do want to apply for a mortgage.

SD Realtor

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