Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
New Home Purchase, Cash or Mortgage, Advice Needed!
Old 10-05-2011, 08:42 PM   #1
Dryer sheet aficionado
 
Join Date: Apr 2008
Posts: 29
New Home Purchase, Cash or Mortgage, Advice Needed!

I have taken up a new job! We will need to sell our home and will be purchasing a new one! We are fortunate to have built up significant equity in our current home. We could potentially buy a new home without a mortgage. On the other hand mortgage rates are at record lows!

I am trying to decide what is the best way to go. I know there are a lot of financially smart people on this forum and was hoping to get some advice.

torres9
__________________

__________________
torres9 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-05-2011, 09:01 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: Following the nice weather
Posts: 6,430
Quote:
Originally Posted by torres9 View Post
I have taken up a new job! We will need to sell our home and will be purchasing a new one! We are fortunate to have built up significant equity in our current home. We could potentially buy a new home without a mortgage. On the other hand mortgage rates are at record lows!

I am trying to decide what is the best way to go. I know there are a lot of financially smart people on this forum and was hoping to get some advice.

torres9
You will get some advice, guaranteed. And it will be all over the place. Since I'm first, I say go with the mortgage. Make sure it's an amount you can pay off whenever you want to, but arbing these low rates into the (in my SWAG) high rate future will be a winning proposition. So one on the mortgage side.
__________________

__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Will Rogers, or maybe Sam Clemens
DW and I - FIREd at 50 (7/06), living off assets
harley is online now   Reply With Quote
Old 10-05-2011, 09:03 PM   #3
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Congrats on the new job. Don't count on the equity in your home until you actually sell it. Only then would I decide on whether to pay cash or get a mortgage for my next house.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 10-05-2011, 09:06 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,117
My advice is choose whatever option lets you sleep better at night. There are advantages to taking either course.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
buy service credits or not... skipro3 FIRE and Money 38 01-20-2014 09:06 PM
Final Stages of 2nd home purchase-Need Input sheehs1 FIRE and Money 46 03-03-2012 09:43 AM
Need Advice jbings4 Hi, I am... 20 08-16-2011 08:53 AM
What should we do with money we want to pay off our mortgage with? TennisFan FIRE and Money 45 07-27-2011 04:18 PM

 

 
All times are GMT -6. The time now is 06:08 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.