[dewilson58]

Originally Posted by Mrfriendly

Unless the person wanted the 2.5% mortgage and choose not to liquidate much of their savings.

Again......................that is an investment decision.

[G.R.I.T.S.]

Originally Posted by dewilson58

I think my first mortgage was 12%. OUCH!!!!

First one was 8 1/2% and was considered “high.” Seven years later, our second mortgage was 11 1/2%. Our goal to pay it off was achieved in two years and we’ve never had another mortgage.

[JGibson]

No wonder TV residents get a snobby reputation.

If someone retires and takes out a mortgage because they don't have the cash who cares it's their business.

Not everyone is as fortunate as others in life or know what may have happened in their life that they don't have the cash for a house.

Stop being so judgmental and condescending of other's finances.

[Rzepecki]

Originally Posted by dewilson58

Sad if a retired person purchases in TV and has a mortgage.

Or wise. Why would I pay cash for my home when my mortgage rate is so low and I can make more by investing my money.

[Rzepecki]

Originally Posted by dewilson58

I think my first mortgage was 12%. OUCH!!!!

Our first was over 13% in 1986.

[RCMill531@comcast.net]

Many people in The Villages have mortgages and could not afford a house now because of 7+ percent interest rates (double our rate in January 2022). Because this is such a desirable area, values go up. It’s happened since the beginning and of course nobody wants their values to remain the same as when they bought. I’m happy mine has gone up $100,000 since we bought and we probably couldn’t afford it at today’s prices and interest rates. Some retirees cannot afford to move here or need to buy a smaller home. That’s life. The same everywhere.

[Mrfriendly]

Originally Posted by dewilson58

I think my first mortgage was 12%. OUCH!!!!

My first mortgage was a 10% seller financed 7yr balloon. I got the house one percent less than going rate and he made 10% on $180K for the 7yrs. We were both happy after crash of 1987.
I would consider doing same as a seller of up north property if rates continue to rise.

[dewilson58]

Originally Posted by Rzepecki

Or wise. Why would I pay cash for my home when my mortgage rate is so low and I can make more by investing my money.

That's called leverage..............that's an investment decision........taking a market risk......not what I'm talking about.

[TeresaE]

Originally Posted by dewilson58

Sad if a retired person purchases in TV and has a mortgage.

Why? Financial security is about cash flow not mortgage debt. I’ve met many homeowners over the years that are equity rich and cash poor. They can’t pay for repairs, taxes or insurance, even with a reverse mortgage in place. They outlive their money.

[dewilson58]

Originally Posted by TeresaE

. I’ve met many homeowners over the years that are equity rich and cash poor. They can’t pay for repairs, taxes or insurance, even with a reverse mortgage in place.

Yep....................that's sad....... a very sad financial position.

[dewilson58]

Originally Posted by Mrfriendly

My first mortgage was a 10% seller financed 7yr balloon. I got the house one percent less than going rate and he made 10% on $180K for the 7yrs.

Oh yes, balloons...................probably become more popular now with slightly higher rates.

[retiredguy123]

Originally Posted by TeresaE

Why? Financial security is about cash flow not mortgage debt. I’ve met many homeowners over the years that are equity rich and cash poor. They can’t pay for repairs, taxes or insurance, even with a reverse mortgage in place. They outlive their money.

If you live your life debt free, you will accumulate enormous wealth. The worst advice some adults give to young people is that they need to "establish credit". The advice should be "don't borrow money".

[Normal]

When The Villages starts discounting more of their new homes, you know the crash is here.

[Randall55]

Originally Posted by retiredguy123

If you live your life debt free, you will accumulate enormous wealth. The worst advice some adults give to young people is that they need to "establish credit". The advice should be "don't borrow money".

Once you accumulate the wealth, you use the money to make more money. You shouldn't pay off debts that are lower than what you can earn. Keeping a 2.5% mortgage while earning 5+ percent in investments makes sense to me.

[BlueStarAirlines]

Originally Posted by MX rider

You shouldn't paint with such a broad brush. Everyones situation is different.
We bought about 18 months ago when the rate was 3.5%. Our investments make more than that, so we decided to finance and leave our cash invested.

That said, some people may be able to afford a mortgage payment and not have enough liquid money to pay cash. There's no real right or wrong way to do it. If people can do this and find their happy place, good for them.

This is exactly right. We have a mortgage at 4% and funds that we could use to pay off the house earning 5.3%. Other investment funds are earning much more. The mortgage tax deduction plus earning a higher interest rate makes paying off our mortgage early foolish.