Posted on 08/05/2023 9:26:33 AM PDT by Drew68
Not sure I understand the problem.
BFD if your rate 3.25%
10 years into a 15 year mortgage means some deep equity.
Sell it and pay cash for a place 1/2 the size.
Sell it and rent a smaller place, spend the profits on vacations...
Etc
I get the whole article, except for the age of the subject. 66 is kind of old to be taking out loans, isn’t it?
In 2012 I bought a brand new 4br/2ba 1800 sq' home in Pecan Park, just south of Yulee. It was in a brand new subdivision, a nice one with a clubhouse, swimming pool, playground, tennis courts, etc. The HOA fee was a whopping $40/yr.
It was a quick 30 minutes to NS Mayport, NAS Jax, and King's Bay, GA.
I paid $165k for it and hoped to spend the rest of my career in Jax, as many in the helo community do.
The Navy had other plans. So I sold it in 2018 for $215k. I thought I did good. The guy who bought it from me sold it a year later for $275k. Today, that house is selling for $360-380k.
Florida housing is going through the roof because tons of people are moving there.
One silver lining to this interest rate spike is maybe it'll slow down the exodus of blue state residents to red states.
5,000 sf mansion with pool and complains about it.
I put 100% down, no interest, no payments.
CNBC is getting to be as fine a prose-writing mess as Vanity Fair. Trapped? Odd verb choice.
"Bob Wood, 66, has been thinking of selling his home in Mobile, Alabama. The finance professor and his wife, Terri, purchased the 5,000-square-foot house with a pool nearly a decade ago. “It's probably time to downsize,” he said. They would also like to be closer to their grandchildren in Tennessee.The guy's a 66-year old finance professor. If they "downsize" and IF they have substantial equity in the property in question, they shouldn't have to consider financing. UNLESS, at 66, this "finance" guy still owed a bundle, because "finance" guys don't understand interest and the effects of compounding. Or they refinanced. Because "finance professor."
For a youngster, the whole economic climate is quite daunting, but for a 66 year old....
Ideally, have a little debt a possible. We have none. Own outright. Own more if possible. But get out of debt. Stay out of debt. It's not the "DC" way, but it's the best advice possible.
Lifestyles of the rich and the famous
They're always complainin'
Always complainin'
If money is such a problem
Well they got mansions
Think we should rob them
Well played, dfwgator - you don’t miss a beat!
The irony is the guy that sang that is dating a Kardashian now.
A Kardashian is dating a white guy? Impossible.
Why does the guy have a mortgage at age 66?
If the existing homeowner feels "trapped" by their sub-3% mortgage and doesn't want to pay the current rates, what makes them think the new homebuyer wants to pay that same rate? Aren't they "trapped" in their current situation, too?
Perhaps they are renters who can't afford (or qualify) for a mortgage at the current rate. Perhaps they are still living in their parents' home an can't afford to buy at the current rate.
In any case, they're just as "trapped" as the homeowner with the sub-3% rate.
-PJ
All it takes are a couple bureaucrat demons to steal everything you own and worked for.
_________________________
Be thankful for what you own. The push is on to divest you of everything you own. As the saying goes - You will own nothing and be happy.
It seems everyone is holding out, buyers and sellers, waiting for the interest rates to drop.
I don’t feel trapped. I like where we live. I wish children who grow up and move out would take all their stuff with them, though.
No mortgage = no more borrowing. You should consider keeping a mortgage to keep your credit score up. Inlaws retired too early, got rid of their mortgage and now can’t finance an RV (or a dually/bumper pull trailer). Dropped 200 points I think when they got rid of all credit cards and mortgage.
I currently have a 10-year fixed rate mortgage at 2.625% that has seven years to go and a balance of about $47k. I can pay it off today, but the money is earning more being invested right now.
-PJ
At age 66, yiou should probably have no mortgage and be saving money so that you can pay cash for that RV.
I am sure there are many people that age with mortgages. Some have life changes that might mean buying a different house: like remarriage, divorce, widowhood, etc.
Not all mortgages are huge.
I can understand that.
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