tag:blogger.com,1999:blog-26981669.post343348757290127750..comments2024-03-23T10:55:30.196-05:00Comments on Cold Fusion Guy: On Mortgage Loan Qualifications for RetireesJim Peethttp://www.blogger.com/profile/07649414726939918803noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-26981669.post-24861703152369427602013-09-19T09:33:42.013-05:002013-09-19T09:33:42.013-05:00We did a HELOC to buy our house in Waseca--worked ...We did a HELOC to buy our house in Waseca--worked pretty well, really. Our actual ration was about 60% debt to value on the Chaska house, but it was otherwise pretty good.<br /><br />Can't quite figure out who you're talking about, though. But no worries; when I was there, I didn't know what everybody did, either. :^)Bike Bubbahttps://www.blogger.com/profile/08193546045614393425noreply@blogger.comtag:blogger.com,1999:blog-26981669.post-43442833116089947572013-09-18T16:02:13.253-05:002013-09-18T16:02:13.253-05:00I was having a conversation with a former 4th Deac...I was having a conversation with a former 4th Deacon that you know. Think a guy that paints. <br /><br />He and his wife want to move closer to the church in Otsego. <br /><br />They wanted to buy a house in Otsego ... move there ... and then sell house in Brooklyn Park.<br /><br />So there situation is a bit like ours. We want to buy a condo in Minneapolis or St Paul ... move in ... and then sell house in Plymouth. <br /><br />The issue is that one's income for the purpose of the mortgage qualification is social security + pension. But $$'s that could be withdrawn from IRA's don't count. <br /><br />Solution that we have found (but not tried): Have a HELOC at the value of 80% of home A. Have cash in hand of 20% of value of home A. Buy house (or condo) B with house A's HELOC + cash in hand. Sell house A ... pay off HELOC.<br /><br />Advantage ... no need for a mortgage.<br /><br />My own philosophy is to have NO mortgage in retirement - indeed no debt in retirement. <br /><br />That's where we are now.<br /><br />But some make the case of having a mortgage. It goes like this: Say the mortgage interest is 4.5% ... but one can make 8% in the stock market. Plus one get's mortgage interest deduction on taxes. <br /><br />Could work! Not my preference!Jim Peethttps://www.blogger.com/profile/07649414726939918803noreply@blogger.comtag:blogger.com,1999:blog-26981669.post-30252825953989029932013-09-18T10:10:06.438-05:002013-09-18T10:10:06.438-05:00I grew up thinking that it was insane to get a loa...I grew up thinking that it was insane to get a loan that you were unlikely to outlive....and even today, I'm thinking that as boomers retire, we're not going to get the fat yields on stocks and bonds we've seen since the Depression, so the difference between mortgage interest and stock returns is not going to be that great....Bike Bubbahttps://www.blogger.com/profile/08193546045614393425noreply@blogger.comtag:blogger.com,1999:blog-26981669.post-354524123307551702013-09-16T13:19:37.899-05:002013-09-16T13:19:37.899-05:00yeah, that's a common storyyeah, that's a common storymortgageinvestors.comhttp://www.linkedin.com/title/assistant-loan-officer/at-mortgage-investors-corporationnoreply@blogger.com