Mortgages

[Xaribe]

Just curious, do most buy out right? I have some concerns as home up here in the Northeast are not selling quickly. So thinking of a down payment, mortgage rest until my other home sells. Just concerned if there are any honest morgage companies in the area?

[billethkid]

Of course there are. Are you of the opinion the area is more made up of dis-honest mortgage companies?

You will get several recommendations but it would help to understand why you asked the question that way?

[villagetinker]

OK here is what we did, we took a look at the interest rates being offered, took a look at our current rate of return, and realized it was a no brainer to take a mortgage and invest the money from the sale of the house up north. having stated this, take a look at your situation, you can always take the mortgage now, and pay it off if it is your best interest. In our case, we were able to get a very favorable rate (citizens first mortgage), and it is in our best interest to keep the mortgage and use the money from the sale of the house to stay in the investments.

Hope this helps.

[Xaribe]

Not familiar with what people use in the area, up here most banks have sold loans to service companies.

[Xaribe]

Thank you, seems to be taking a very long time to sell in Northeast. Thinking maybe the spring willl be better. Nothing but snow as of this winter, near Boston/Providence.

[jnieman]

Just curious, do most buy out right? I have some concerns as home up here in the Northeast are not selling quickly. So thinking of a down payment, mortgage rest until my other home sells. Just concerned if there are any honest morgage companies in the area?

We have our mortgage through Quicken Loans. We were very pleased (a few years ago) of getting a VA loan with a rate of 3.75%. They offer many other types of loans as well and you can apply and do everything on line. They send a notary to your home for the closing.

[pmbinnj]

Mortgage interest is oftentimes the largest deduction one has on their federal taxes. If you're a savvy investor, or have a trusted/knowledgeable adviser, you can earn more than the interest you're paying. You can always pay the mortgage off early if necessary. The mortgage gives you options -- especially when rates are so low.

[villagetinker]

OP,
pmbinnj, stated the same thing I was saying in a better manner. Talk to your financial advisor.

[Packer Fan]

We have our mortgage through Quicken Loans. We were very pleased (a few years ago) of getting a VA loan with a rate of 3.75%. They offer many other types of loans as well and you can apply and do everything on line. They send a notary to your home for the closing.

I will second Quicken loans. The villages will try to drive you to their own bank, Citizens First. I got the Good faith estimate and almost passed out - like $9000 in closing costs. Quicken loans was WAY less, like $2400 or so if I remember correctly. The Closing people at McLin and Burnsed are excellent and they will work with any mortgage company. Just my 2 cents worth.

[JoMar]

I believe most banks sell their mortgages when it's in their financial interest to do so. I also agree with the other posters, we took our mortgage with Wells Fargo for 30 years (I expect to be dead by that time) because I was making more on my investments then I would pay in interest and the sale of my PA home gave me cash flow to invest and furnish the house here. Getting too old to pay anything off and lose investment opportunities

[TrudyM]

Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.

[kstew43]

try Lending Tree. we used them and they had the best rates available at the time from Discover.

Citizens rates we much higher and we didn't fall for the close on time ploy.

Put it out on the internet and see what you get.

[Challenger]

Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.

My guess is that if the value of the pledged stock falls past a defined percentage of the outstanding loan, the borrower will need to post additional security on pay down---- yes? no?

[Chatbrat]

Have never paid any interest in my life, never had a mortgage-interest keeps poor people poor and makes rich people richer. Have no pension--live off of interest & dividends.

[bagboy]

If you shop for a mortgage, look at 2 things. Interest rate and total closing costs (including any that are rolled into the loan). Mortgage companies fall under such federal scrutiny that if you choose a reputable lender, online or local, everything will be disclosed to you upfront...Read all facts and figures before acting.
I strongly urge you to shop for yourself, get numbers for yourself. At the time, we found Citizens Mtg to be competitive with most lenders contrary to what has been said in this thread. Today it might be different, I don't know. Do not be wary of brokers/lenders who sell all or a percentage of their loans. There are many reasons for them to do this, it's just in the course of doing business, it usually has nothing to do with individual borrowers.
If you have a financial advisor, by all means get their advice first. They should know what financing option will work best for you. Good Luck!!!

[billethkid]

When all gets said and done most of us do not care if the banks wind up selling their loans (our mortgage). It does not change anything. The banks make a profit and there is still enough left for the new owner to make a few $$ as well.

As far as never having a mortgage or paying interest...that is fine if that is one's choice. But as some have already stated having a mortgage for less than 4% and making 8% in investments is a no brainer.

Granted there is a satisfaction in knowing one does not owe anybody anything.
I have always subscribed to the practice of using other peoples money (banks) as long as it makes more money fo me to do so.

A lot of retirees have a goal to have their house paid in full. Again fine if that is their goal.

[dirtbanker]

As far as never having a mortgage or paying interest...that is fine if that is one's choice. But as some have already stated having a mortgage for less than 4% and making 8% in investments is a no brainer.

Hmmm...I realize you pay the 4% in interest on the mortgage and then you get a tax deduction (not to be confused with a tax credit, where you would deduct the 4% paid on the tax owed), but don't you also have to pay income tax on that 8% return (income) on investments?

As long as you are sharing your financial wisdom...If your investments in the portfolio take a nose dive (lets say you invested in Seadrill and the recent crude oil prices have driven your holdings value down), would you be able to deduct those losses from your taxes? Would you have to sell the stock at the losing price to take the deduction?

Oh never mind...I could not sleep at night worrying about all that!

[TrudyM]

My guess is that if the value of the pledged stock falls past a defined percentage of the outstanding loan, the borrower will need to post additional security on pay down---- yes? no?

65% of pledged stock so if you sell some you have to pay down the loan.

We previously when we moved did what others are advising here invested the money from our sold house and took out a mortgage when we bought. The after tax effect of the investment made us money which has helped us buy now. However it is not without risk, we were both working at the time if the stock market tanks it could be a risk. As total funding for a purchase a portfolio loan would require a huge portfolio but as an augment to cash and an avoidance to liquidation of a growth position it is an option.

[TrudyM]

Hmmm...I realize you pay the 4% in interest on the mortgage and then you get a tax deduction (not to be confused with a tax credit, where you would deduct the 4% paid on the tax owed), but don't you also have to pay income tax on that 8% return (income) on investments?

As long as you are sharing your financial wisdom...If your investments in the portfolio take a nose dive (lets say you invested in Seadrill and the recent crude oil prices have driven your holdings value down), would you be able to deduct those losses from your taxes? Would you have to sell the stock at the losing price to take the deduction?

Oh never mind...I could not sleep at night worrying about all that!

As I understand it and I am no expert you can only take a loss by selling a stock. You can however if you wait at least 30 days to repurchase at the lower rate realize the loss for tax purposes and the basis of the new purchase is the lower price. if you sell or buy a stock within 30 days of trading it the wash sale rules apply and you don't get to deduct the loss.

[pmbinnj]

Have never paid any interest in my life, never had a mortgage-interest keeps poor people poor and makes rich people richer. Have no pension--live off of interest & dividends.

Never borrowed? Then you have lost out on many opportunities to better your financial situation. Just a credit card, when paid in full each month, is borrowing with no interest payment. Most well off people understand that it is always better to use some else's money rather then your own. You should always do what you are comfortable with but NEVER assume that no "debt" is better than no good debt at all.

[pmbinnj]

As I understand it and I am no expert you can only take a loss by selling a stock. You can however if you wait at least 30 days to repurchase at the lower rate realize the loss for tax purposes and the basis of the new purchase is the lower price. if you sell or buy a stock within 30 days of trading it the wash sale rules apply and you don't get to deduct the loss.

Yes, true, must sell to have a loss. But this can be a good thing. Consider the ways around a wash sale. Sell the stock for a loss, take the tax deduction, then buy a mutual fund (which holds a large amount of the stock you took the loss on) and consider this a tax loss harvesting situation. Come back later and buy the stock you assume will appreciate. Works nicely and within the irs. I'd rather have it appreciate for me than pay the tax...just saying...

[billethkid]

We use a credit card for almost 100% of all our monthly purchasing/living expenses.
We use Citi Banks Double cash rewards card.

One percent credit for evey dollar spent. Then one more percent when it is paid off. As we never carry a balance and pay it off in full each month there is an effect of 2 percent credit per month. And unlike most other reward cards there is no limit to the accumulated credits. Which can be redeemed for cash or merchandise or other stuff.

Depending on one's monthly living expenses there is a fair amount of cash back at the end of each year. One does not spend any more than if they were paying cash for everything.

There are many other benefits like charging travel, extended warraties on merchandise paid for with the card.

I believe in the old saying pennies make dollars. And in this case dollars make more dollars.

[RickeyD]

We use a credit card for almost 100% of all our monthly purchasing/living expenses.

We use Citi Banks Double cash rewards card.



One percent credit for evey dollar spent. Then one more percent when it is paid off. As we never carry a balance and pay it off in full each month there is an effect of 2 percent credit per month. And unlike most other reward cards there is no limit to the accumulated credits. Which can be redeemed for cash or merchandise or other stuff.



Depending on one's monthly living expenses there is a fair amount of cash back at the end of each year. One does not spend any more than if they were paying cash for everything.



There are many other benefits like charging travel, extended warraties on merchandise paid for with the card.



I believe in the old saying pennies make dollars. And in this case dollars make more dollars.


The vast majority of people don't have the discipline you have. The slaveowners know this and make hundreds of billions on their indentured servants. Me, I approach these things the way Dave Ramsey does, neither a borrower or lender be.

[pmbinnj]

The vast majority of people don't have the discipline you have. The slaveowners know this and make hundreds of billions on their indentured servants. Me, I approach these things the way Dave Ramsey does, neither a borrower or lender be.

There is a difference between sound financial advice and content that merely sells books to the masses. When it comes to long term, profitable investing, formal education and discipline go hand in hand. And, using knowledge to make the right investment selections can compensate for any possible lack of discipline. Consider automatic deductions to provide for dollar cost averaging = knowledge compensating for lack of discipline.

Many people rely on knowledge (really good!) or knowledge and sheer common sense (ok - nothing wrong with that). But relying on a popular author (with a Bachelors�s degree) to determine my financial future? No thanks. The person using their credit card wisely is miles ahead. People without debt always think they are better off �but those who strategically use debt to their financial advantage are actually the ones who are better off in the long run.

I thank the credit card companies every month for loaning me money at 0% interest.

[RickeyD]

There is a difference between sound financial advice and content that merely sells books to the masses. When it comes to long term, profitable investing, formal education and discipline go hand in hand. And, using knowledge to make the right investment selections can compensate for any possible lack of discipline. Consider automatic deductions to provide for dollar cost averaging = knowledge compensating for lack of discipline.



Many people rely on knowledge (really good!) or knowledge and sheer common sense (ok - nothing wrong with that). But relying on a popular author (with a Bachelors�s degree) to determine my financial future? No thanks. The person using their credit card wisely is miles ahead. People without debt always think they are better off �but those who strategically use debt to their financial advantage are actually the ones who are better off in the long run.



I thank the credit card companies every month for loaning me money at 0% interest.


No disrespect intended, but that is a whole lot of popular crap. Remember, it was the tortoise that won the race.

[pmbinnj]

No disrespect intended, but that is a whole lot of popular crap. Remember, it was the tortoise that won the race.
No disrespect taken. I don't know a thing about tortoises but I just hope the college students I taught for over 2 decades don't think that a book for the masses replaces a solid education. After all, no one can take your education away from you...but the masses are asses. Everyone has to do what they are comfortable with but smart choices are not more undesirable just because they are not your choice.

[dirtbanker]

You can however if you wait at least 30 days to repurchase at the lower rate realize the loss for tax purposes and the basis of the new purchase is the lower price.

Yes, that is probably what most would like to do if they had just lost 60K in an investment 30 days prior - buy more when the value dropped further. I wonder how many took advantage of that investment opportunity October 30th, 2008...maybe many of them had capital in a savings account to fund the purchase of the beaten stock...

Some people fool themselves with funny math with regard to leverage. Tax deductions will never cover the true costs of leverage (you only save the amount you would be taxed on for the amount of the expenditure). If they were tax credits than leverage would be the way to go (you would deduct the cost of the expenditure from your owed tax).

[RickeyD]

No disrespect taken. I don't know a thing about tortoises but I just hope the college students I taught for over 2 decades don't think that a book for the masses replaces a solid education. After all, no one can take your education away from you...but the masses are asses. Everyone has to do what they are comfortable with but smart choices are not more undesirable just because they are not your choice.


I tried college for a year or so, learned nothing about life or how to make money. I'm now light years ahead of most college graduates. College teaches nothing useful, IMHO. I never read Dave Ramsey's book, but I have listened to him and I found we are very much the same when it comes to common money sense. If we're on the subject of masses are asses I couldn't agree with you more. Neither can the slaveowners. Like I said, most people don't have the discipline that you have or profess to others. Credit card points/ rewards suck in the money wise foolish that need instant gratification to fill a need that only hard work and patience can truly satisfy. When these folks finally realize the chains of debt that have weighed them down for so many of their working years can not support the years we can no longer or don't want to work, it's too late. Their golden years will not be golden. They will not live in comfort, and eventually will become a debt burden on all of us through higher taxes for social services. The banks win, we loose.

[Miles42]

I did not buy outright. Mortgage was my way to go. No need to use my funds to pay off a home at my age.

[JoMar]

I tried college for a year or so, learned nothing about life or how to make money. I'm now light years ahead of most college graduates. College teaches nothing useful, IMHO. I never read Dave Ramsey's book, but I have listened to him and I found we are very much the same when it comes to common money sense. If we're on the subject of masses are asses I couldn't agree with you more. Neither can the slaveowners. Like I said, most people don't have the discipline that you have or profess to others. Credit card points/ rewards suck in the money wise foolish that need instant gratification to fill a need that only hard work and patience can truly satisfy. When these folks finally realize the chains of debt that have weighed them down for so many of their working years can not support the years we can no longer or don't want to work, it's too late. Their golden years will not be golden. They will not live in comfort, and eventually will become a debt burden on all of us through higher taxes for social services. The banks win, we loose.

A mind made up is a mind closed down

[RickeyD]

...

[Xaribe]

just want to thank everyone, some excellent ideas.

[RVRoadie]

It's been a couple of years, but Citizens First offers Home Equity loans at 4.5% with no closing costs (as long as you keep the loan for a few years). They require a $50,000 draw at closing, but if you don't need it, you can just pay it back. The rate is variable, so if rates ever go up just have a plan B available. I used the proceeds to purchase rental houses just outside The Villages.

[Chatbrat]

Don't worry about saving money, worry about making money--generate income, not deductions--even if you're in the max tax bracket only that % of your loss is deductible if you have a capital gain.

[dave from deland]

Just curious, do most buy out right? I have some concerns as home up here in the Northeast are not selling quickly. So thinking of a down payment, mortgage rest until my other home sells. Just concerned if there are any honest morgage companies in the area?If you are a veteran you can get a VA loan for the Village house with nothing down. As long as you can make two mortgage payments until the first house sells, you are fine. I got a VA loan through Suntrust bank at 3.75% and put the other home up for sale.

[Laurie2]

Answers will vary. And that's OK.

There is an area of investment study known as Behavioral Investing. There are some easy reads available on the subject. (If you are interested, you can search Amazon with the term and read reviews of books. Or take a little ride to B&N at Sumter and peruse the finance/investment section.)

It boils down to "Know Thyself" or "To thine own self be true." But the subject gets into how you have to recognize your own personality traits and emotional responses that can mess with you or help you. By this point in life, we probably know who we are and what lets us sleep at night where money is concerned.

Mortgages in retirement? I would say if you have a dependable stream of income that can make that payment each month as long as you need or want to, then your sleep should be just fine. (Pension. Social Security. Dependable dividends. Whatever works into your budgeted amounts for living expenses -- and stays there.)

But there are many who don't want a mortgage at all. That is their psychology and there is nothing wrong with that.

But. . .if you take a mortgage in retirement, my advice is to just be sure you have built a moat around that castle of yours.

[HimandMe]

I need a good investment advisor!

[gratefulparrot]

Hey Ricky. Don't be discouraged. I'm with you on this. When I get down there, I'm paying outright. Can't imagine why I would pay interest to a bank to just give money away. It's mine and I earned it. Will my credit score go down, yep, but who cares. I pay cash for everything. Unlike Dave R, I do have a couple of credit cards, but I've only used them when I don't trust the vendor.

[JoMar]

Hey Ricky. Don't be discouraged. I'm with you on this. When I get down there, I'm paying outright. Can't imagine why I would pay interest to a bank to just give money away. It's mine and I earned it. Will my credit score go down, yep, but who cares. I pay cash for everything. Unlike Dave R, I do have a couple of credit cards, but I've only used them when I don't trust the vendor.

You have no investments that make more than 4.5%? Wow.

[RickeyD]

You have no investments that make more than 4.5%? Wow.


Ok Rockefeller, share your wisdom with all us unsophisticated folk. Being mindful that most of us are 60 plus, not 20 plus...

[gratefulparrot]

You have no investments that make more than 4.5%? Wow.

I'm not a financial guru like yourself. I'm a high end computer geek. How is paying interest and investment? I prefer not paying the bank interest, then what I save in not paying that interest, to invest that in another way. Maybe I'm just not that smart.

[NavyNJ]

As most here have said, it's very dependent on your personal situation, your financial "personality" and your longer term financial goals, but in our case, as with some others here, we decided to take out a mortgage initially in order to get into the house we found and liked before it was gone last Nov. Now, can everyone do that? No. In our case the financials worked out.

I will also add that contrary to what some may have experienced, or perceived, we were never in any way "urged" or "driven" or even "nudged" in one direction or another when it came to selecting a mortgage company. Yes, we were provided with all the options and benefits of using Citizens First Mortgage (different entity, btw, from Citizens First Bank - connected, but not the same), but we we also encouraged to check the market if we liked. Being able to close by our target date was also important, so that was a factor that we compared other companies against.

In the end, we chose Citizens First Mortgage and had a smooth, uneventful closing, on time. The one other feature of the Citizens First Mortgage product, when we compared to others, was the ability to "modify" the loan in the future without needing to go thru the hassle and cost of refinancing. This played into our plans to apply the bulk of our home sale proceeds up North to our mortgage in TV to reduce our payments. We're able to do this easily thru the Loan Modification feature, keeping everything about our loan the same, except the principle and amortization schedule without having to go thru a complete re-fi with closing costs, etc. Hope that adds to your decision making process.....Best of luck, whichever way you go!!

[RickeyD]

Hey Ricky. Don't be discouraged. I'm with you on this. When I get down there, I'm paying outright. Can't imagine why I would pay interest to a bank to just give money away. It's mine and I earned it. Will my credit score go down, yep, but who cares. I pay cash for everything. Unlike Dave R, I do have a couple of credit cards, but I've only used them when I don't trust the vendor.


As far as I'm concerned, interest saved is interest earned. Same thing with zero risk and NO debt. Debt is for fools at our age. I sleep at night knowing I'll never get a knock on the door and the Sheriff showing me the eviction notice. I don't know what it's like to be homeless, but I've seen plenty of it. There but for the Grace of God go I. And since I'm an atheist I need to watch out for myself, myself. No debt, no worries.

[JoMar]

I'm not a financial guru like yourself. I'm a high end computer geek. How is paying interest and investment? I prefer not paying the bank interest, then what I save in not paying that interest, to invest that in another way. Maybe I'm just not that smart.

Didn't say you aren't smart but I don't think I would take a substantial amount of money that returns 8+% to save 4.25%. That's giving away profit....and opportunity and cash flow. If it works for you great......just doesn't work for me.

[MSGirl]

I may be missing the boat in its entirety, but at my age, I don't need to have any debt. The least amount of debt I have, the easier I sleep. And isn't your home the best investment over stocks ( long term stocks could be great... But in our life time?), money markets and other "investments"? Real Estate is still the best investment by far. We will make more in our homes, than anywhere else. And for the guy trying to sell his home up north- patience! The best time to put your home on the market is in the spring. If your home is priced right, it will sell.

[gratefulparrot]

Didn't say you aren't smart but I don't think I would take a substantial amount of money that returns 8+% to save 4.25%. That's giving away profit....and opportunity and cash flow. If it works for you great......just doesn't work for me.

Again educate me. If I pay the bank interest, how do I gain 8+% profit, versus the investment of what I would have paid in interest to the bank and investing that in a mutual fund?

[Challenger]

Didn't say you aren't smart but I don't think I would take a substantial amount of money that returns 8+% to save 4.25%. That's giving away profit....and opportunity and cash flow. If it works for you great......just doesn't work for me.

Where do you get a "secure""guaranteed" investment of 8 per cent(net)???

when you pay off a 4.25percent mortage, you have secured a 4.25percent(absolutely guaranteed) gain.

[pbkmaine]

We have no mortgage. One less thing to worry about.

[llaran]

Talk to George at TrustCo bank, they hold there own paper, no escrow, no closing costs. Located near Home Depot on 441.

[JoMar]

Again educate me. If I pay the bank interest, how do I gain 8+% profit, versus the investment of what I would have paid in interest to the bank and investing that in a mutual fund?

My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.

[The Buckeyes]

We use a credit card for almost 100% of all our monthly purchasing/living expenses.
We use Citi Banks Double cash rewards card.

One percent credit for evey dollar spent. Then one more percent when it is paid off. As we never carry a balance and pay it off in full each month there is an effect of 2 percent credit per month. And unlike most other reward cards there is no limit to the accumulated credits. Which can be redeemed for cash or merchandise or other stuff.

Depending on one's monthly living expenses there is a fair amount of cash back at the end of each year. One does not spend any more than if they were paying cash for everything.

There are many other benefits like charging travel, extended warraties on merchandise paid for with the card.

I believe in the old saying pennies make dollars. And in this case dollars make more dollars.
Have been using a credit card to pay for most things for the past 23 yrs. Get cash back and it is always wise to use someone else's money! But, you must be disciplined to pay off the full balance every month, we have the payment made from our checking acct that way we are never late!

[RickeyD]

My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.


Bull markets don't last forever. Eventually someone needs to pay the piper. It ain't gonna be me.

[The Buckeyes]

Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.

We did something similar. Put up 39% of the mortgage price in stock using it as collateral. It has worked well and even though I can not sell the stock at his time....as soon as my principle owed is less than 80% of the purchase price the brokerage will free up my stock free and clear and that will happen next month on our home. During this period you still get to collect the dividends and the long term capital gains are low compared to ordinary income. The best of both worlds and did I mention the interest rate on the loan was way lower than a bank. :a040:

[gratefulparrot]

My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.

I get what your saying. And congrats that you can score 8% on all your investments.

We just have different ways of looking at things. I want my house paid off for my kids and not die with a mortgage to pay off. Plus, I think whatever the mortgage/interest payment I would be spending while I'm alive, I can invest that into a IRA or Mutual fund to keep generating money while I'm alive. But that's just my line of thought