Quote:
Originally Posted by IRISHGIRL3US
I was planning g on cash for the house and bond
|
We really cannot answer all this for you. Cash for the house and the bond?
I find it interesting and shocking to view reality. You can get a 30 year mortgage at the average age in the villages of 70 and pay, around 2% interest. That interest can be deductible for some. Odds of living to 100 and living in the same place for the next 30 years??????? So fuzzy math 2%-30% is 1.4%. The bond, the interest is 5% at least mine was. I was told the interest is due to go down in two years. Be sure to verify everything I am saying.
On a mortgage, I think there is a prepayment penalty if you pay it off in less than two years. That is a matter of law. It is there in a mortgage, fine print, somewhere. There are also closing costs. Roughly 4,000. That too is there. Might also be fine print. Some people, slight of hand, put the closing costs into the loan amount.
There is some value to not having to pay a mortgage and or the bond. Is it worth the cost, the loss of the use of your money. The long term 30 years return on your money,
only you can answer that.
Not having enough income to qualify for a mortgage? I was told by the bank I needed a letter from my brokerage that I signed a letter that they would withdraw ????? dollars from my account and send me a check. I'm sure both knew the reality. The brokerage told me they regularly get this request no trouble, no cost to do it and you can cancel it as soon as the mortgage is issued. A phone call no cost to do it.