[Two Bills]

Originally Posted by dewilson58

Why??.................some people take on debt and invest their cash at high rates of return.

As I did when I was working, could survive the hits when market was down, and had income coming in to make up the shortfall.
When we retired our stock linked savings went into government tax free cash funds with lower, but guaranteed returns, no index linked falls, and rises inline with inflation.
Has worked well for us, and I do not have to keep watching market for trends and falls, which leaves us quite free to enjoy ourselves.
At present rate of funds depletion, we are good until we get to about 105 years old!

[Larry P.]

I bought in April, 2017 and will retire in January, 2022. We have used the house as a furnished, short term rental property and have been lucky enough to have the renters pay for most of the mortgage payments while we wait to retire. We still come down two or three times a year when it isn't rented. I am using this time to make improvements to the house, we've replaced most of the appliances and added a lot of homey touches. I went this route figuring it would be easier to make major purchases while I was still working so hopefully there won't be any major expenses once January, 2022 rolls around. I have also not found it that difficult to manage a rental property from up north; there is plenty of information out there for any type of repair or maintenance that might be needed. All in all this has been a great experience for us and we enjoy the flexibility that short term rentals offers us. It also helps to have great neighbors that you can let us know if anything needs our attention. Best of luck!

[Chatbrat]

Unlike most, we never had a mortgage, I broke my butt--worked until I could pay cash for everything we bought--man makes plans & God laughs--retire yesterday, you can't square root life

[ColdNoMore]

Originally Posted by eweissenbach

Well, then there are people like me. I prefer to carry a mortgage that I can comfortably afford at less than 4% and income tax deductible and leave my investments alone to earn considerably more. There are millions of stories in the Naked City.

YEP!

[rrb48310]

Originally Posted by Gigi3000

It's TRUE that second homes have higher interest rate. They're easier.to walk away from, thus more risky for the lender.

If your the type that walks away you’ve probably got some dents in your credit and pay higher interest rates to start.

We bought after retirement, had no problem getting a mortgage, at market rates. No discrimination, that includes age when getting a mortgage. Just credit, income and debt ratio.

I agree with earlier posts and decided not to cash out my investments (8% or more return) to save on paying a 4% mortgage.

We’re very happy where we are and got a great buy, that being said if I had to do it over I would shop prior to retirement in high demand areas and buy “the” property when and if it became available. Maybe that would help lower the “average Villager moves three times” saying.

[Chatbrat]

All I know, is I was informed by relatives with a lot more knowledge than I could ever hope to acquire--to buy Unilever when it was an over the counter stock--thanks to their advice-we're are truly fortunate to have 880K shares of UN , today--it has enabled us to lead a great life and retire early--I still ran my businesses, despite the fact, that I could have retired much earlier--this fact was ingrained into my head as a young lad--interest keeps some people poor while it makes others rich--avoid debt at all costs-- interest is not 100% deductible

[valuemkt]

When I worked for IBM there was a fable that the average retiree only collected X number of paychecks, and everyone knew at least ONE person that proved that point. Now that I am of that certain age, I know PLENTY of people that have been collecting checks for 10, 20 and more years ..
So I did what anyone can do .. an internet search, and came to a site called finders.com life insurance .. odds of dying, and here;s the odds of a 67 year old dying within X number of years - they give all ages, but since 67 is close to SS FRA (full retirement age) I list that below for brevity and hopefully closure on one persons perspective or opinion:
Odds of a 67 year old dying within
ONE YEAR - 1.83%
FIVE YEARS - 10.39%
10 YEARS - 24.43%
20 YEARS - 64.17%
30 YEARS - 95.99%

So While you may subscribe to the Eat and be Merry for tomorrow you may die mantra,

Hopefully you can do the above for many many more years ..

[Dlbonivich]

As a realtor here in The Villages I am aware of the increase in value over the last 5 years. The number is 25%. Inventories remain low and the demand is high. Maybe the person who told you your credit would go down had experienced the drop because they no longer had large revolving loans. Car payments and mortgages show credit worthiness. If you do not have those showing in the last year then your rate will probably drop.

[eweissenbach]

Originally Posted by Chatbrat

All I know, is I was informed by relatives with a lot more knowledge than I could ever hope to acquire--to buy Unilever when it was an over the counter stock--thanks to their advice-we're are truly fortunate to have 880K shares of UN , today--it has enabled us to lead a great life and retire early--I still ran my businesses, despite the fact, that I could have retired much earlier--this fact was ingrained into my head as a young lad--interest keeps some people poor while it makes others rich--avoid debt at all costs-- interest is not 100% deductible

A 4% mortgage in a 35% tax bracket is an effective rate of 2.6% net after federal income tax. I am a Chartered Financial Consultant and I am confident that over a five or ten year period I can comfortably beat that rate with my investments. It is called leverage. Everybody has to do what helps them sleep at night - there are many roads to success as well as failure.

[kpd3062]

Originally Posted by ts12755

When you retire and sell your home pay cash for your village home. You'll be too old for a new mortgage. 50% percent of men die within 3 years of retiring.

How long have you been retired?

[JLH1962]

Originally Posted by Chatbrat

880K shares of UN

50 million dollars. Yeah, that's a nice retirement. Good job!

[OrangeBlossomBaby]

Originally Posted by JLH1962

50 million dollars. Yeah, that's a nice retirement. Good job!

Man - if I had even 1 of those million dollars we'd be able to live off the interest, and still pay taxes, and not have to worry about health insurance. The interest plus a very modest pension, plus social security for him coming in 14 months, plus social security coming for me in 2 years and 14 months...

Could even afford a new car to replace the clunky piece of tin I got in 2010. Or at least an arm rest. Can you believe they make cars that don't come with arm rests these days? Insane.

[Caterking]

Originally Posted by Two Bills

I don't think there is any panic to buy until the Village of Miami is for sale!

Too late....we are coming!

[dewilson58]

Originally Posted by Gigi3000

It's TRUE that second homes have higher interest rate. They're easier.to walk away from, thus more risky for the lender.

You gots the wrong lender.

[Aloha1]

Originally Posted by Dond1959

The person who told you your credit score will decline and interest rate will be higher is wrong. A second home will usually have a higher interest rate. It is a personal decision whether to buy now or after retiring. Many buy and rent out until they are ready to move to lock in price but it can be a hassle to manage from far away. Many things to consider but others on here can provide you their experience. Good luck.

There are some truths to what happens after you retire in terms of getting a mortgage. You no longer have a "paycheck" and that's the first key item mortgage companies look at. You could have $2 million in retirement money but to a bank, you have zero income. If you can swing it, buy now before you retire and rent it out until you do.

We did find Citizen's Mortgage to be competitive plus they "get" the fact that retired folks have capital.