[TeresaE]

Originally Posted by Normal

3 days ago Jamie Dimon stated 8% rates are in our near future. Most cannot argue this because national debt is climbing well past GDP. How will this affect life here in the Villages?

Jamie Dimon—Head Of U.S.’ Largest Bank—Warns Of 8% Interest Rates Along With Recession

In my experience and observations, the secret to a secure retirement is cash flow. Paying cash for a home ties up a large sum that you can likely never access. Why? because in retirement your earnings are diminished.

So qualifying for a home equity loan is nearly impossible. In other words, one becomes equity rich and cash poor.

Whereas carrying a mortgage allows you to preserve your cash. Cash for medical bills, home repairs, and even investments. Those investments may even offset the cost of the mortgage. So a 7.5% mortgage costs you 3.5% if the moneys you invested give a return rate of say 4.0%.

One last thought. If your mortgage payment, including taxes and insurance, is less than rent for the same property, then you win again. And nobody can kick you out by not renewing the lease. There’s a lot to be said for that kind of security.