Don't know where I want to retire to. Certainly not San Diego but I don't know if I want to return back to Virginia either.
I thought about selling my Suffolk home but I don't want to give up that great interest rate so I have opted to rent it out for a while and see what happens.
I'm still kicking myself for selling my home in Jacksonville, Florida. Even though I netted a nice profit, the value of that home has skyrocketed since I sold it. I wish dearly I had held on to it and rented it out instead.
OR... People can be like me where the government demons seized your property for something stupid like a city park bathroom. All it takes are a couple bureaucrat demons to steal everything you own and worked for.
Can you believe how petty and ungrateful these people sound? How about the sorry people trapped paying 2k a month in rent for dog crap.
Let’s suppose he owes $100,000 on this mortgage.
If I were in his shoes, I’d ask the bank how much they’d be willing to accept to prepay the whole thing right now … because someone is losing a lot of money lending money at 3.125% when the current prevailing rates are around 7% and the official (underreported) inflation rate is over 4.5%
Huh? Wouldn't there be a one-for-one match in the reduction in the number of buyers then? I can understand real estate agents crying about that because they get zero commission from people not moving, but a shortage is housing isn't caused by people not moving around - it is caused by the difference between new buyers and building.
If you play musical chairs with 20 kids and 19 chairs, but allow 15 to just sit rather than fight for a chair the competition is still the same for the other 5 kids fighting for 4 chairs.
We were thinking about moving to Tennessee for retirement, but have decided for the time being to stay put. The grass isn’t always greener, it’s just green, same as where we are now. Plus, retirement has been pushed back several years, thanks to Joe and the policies he pushes. For all I know, this may be our forever home.
Cheap mortgage….or having your grandchildren know who you are
Decisions decisions
In year 10 of a 15 year mortgage on a 5000 square foot house with a pool, it’s hard to believe this guy couldn’t sell, pay off the remaining balance and buy a smaller property in Tennessee with the remaining cash. If he can’t do it this year, he ought to be able to soon.
I don’t get why anyone would finance their next home when they are heading into retirement.
They should have Paid the House off in 10 years. My last mortgage I paid off in 10 months, the mortgage on my House at the Colorado River in AZ I paid off in less than 10 years. then I paid all cash for the house I just built, because I have NO BILLS or DEBTS.
My daughter has a house in AZ right down the street from mine, I paid cash for it with the inheritance she got from my father when he died, Her and her husband did a cash out refi and paid cash for a house in Texas where they moved to. Her house is rented out for double the loan payment and the loan will be paid off on a 5 year schedule by paying every last nickel extra they can come up with and they will no longer be debt slaves.
Everyone should do everything possible to avoid becoming a Debt Slave. Every last nickel you can muster should be used to PAY off any and all debts, especially a Mortgage.
Oh, no! I have a low rate mortgage and that is just BAD!
Liberals are morons. The real problem isn’t the low rate montage. The problem is the democrats have jacked interest rates. They love Big Banks and Big Oil. Bog banking and oil industries have massive record profits when democraps are in office.
Bad news…once you rented your house it stopped being your home and became an investment. You lost the sheltered appreciated value of every previous home you owned and rolled into buying this one. Now when you sell its all taxable gain, plus taxes on the depreciation you are forced to declare.
Your only hope is to move back in for long enough the IRS accepts it being converted to personal residence. At least a year, maybe more.
Or stay on the investment property merry go round by doing a Starker deferred exchange when you sell, and buy another investment property.
Then MAYBE try to do the personal residence conversion thing by moving in after renting for acceptable time…1-2 years depending on the rules
The rules keep changing so you need to keep up and get tax expert advice.
Been there, doing that.
It’s also the grandfathered property taxes. Move and most likely your property tax bill goes way up.
If he is 10 years in on a 15 yr mortgage, he has plenty of equity in that house. If he’s downsizing and moving to Tennessee, he might be able to pay cash for a house and not have a mortgage.
Paid off our 30-year loan in 7 years over 14 years ago and never went into a penny of debt again.
My parents could have paid off their mortgage ten times over but never did.
There is a certain mentality that thinks debt is a financial strategy.
To me, debt is danger. Savings is safety.
Yeah, anything near Mayport has gone way up. My SIL / BIL have been looking at Ponte Vedre, and it’s very expensive.
We bought a next phase house two years ago and are darn glad we did. I think it’s worth $150k-$200k more than we paid, not that we’re interested in selling.
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
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.
Why does the guy have a mortgage at age 66?
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.