Mortgage/Withdrawal Rates

[stevelb]

I am thinking of purchasing a new residence which would probably be my long term retirement home. I will need about $200,000 plus the net proceeds from my current house. I can either take the $200,000 from my nest egg or get a mortgage. My thoughts were that $200,000 equals $8,000 per year using a 4% withdrawal rate. That $8,000 would not be enough to service a $200,000 mortgage at any rate greater than 4%. Thus it seems to me that I am better off taking the $200,000 from my nest egg rather than obtaining a mortgage.

What do you think? Am I missing something here?

Thanks, Steve