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Old 10-14-2018, 03:31 AM   #21
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Susie also said you need at least $5million to retire, didn’t we have a thread on that.
Yes, we did. Susie has zero credibility these days... if she ever had any to begin with.

The one thing I agree with her on is that 15 year mortgages are preferable to 30 year because of the lower interest rates.
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Old 10-14-2018, 06:07 AM   #22
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Yes.
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Old 10-14-2018, 07:16 AM   #23
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Toss up n my opinion. Since you intend to sell in 2 years, I would probably opt to keep cash on hand. But since your main income is pension and adjusted annually so you don't have to necessarily wait out downturns in market, maybe you could go ahead with payoff. I know my DW will want lots of cash on the statements for her comfort level....

Since I plan on using a lot of after tax monies leading up to medicare, and then 60-70% of income will be retirement plan withdrawals, I will probably carry a $100k mortgage when I retire and relocate so I can hold on to the post tax cash accounts for safety against market downturns.
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Old 10-14-2018, 07:19 AM   #24
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Since your plan is to sell and move in only two years time, I vote No.

Use the proceeds from the sale of this home to buy your planned condo for cash. You will be in the same "no house payment" position without depleting your cash reserves.
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Old 10-14-2018, 09:10 AM   #25
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I'm normally in the pay it off camp. However, since you plan on moving in 2 to 3 years I wouldn't bother paying it off.
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Old 10-14-2018, 09:52 AM   #26
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All calculations aside, we bought our current house with cash. Family thought we were nuts in the low interest environment. But hey, we sleep better at night, we own our house, hate debt no matter how you look at it and it simply suits us.
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Old 10-14-2018, 10:05 AM   #27
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I wouldn’t pay it off. For one thing you’re probably earning more than 4.5%, your mortgage rate, on your investments. But that’s not the real reason. It’s very disturbing to mortgage companies if your money fluctuates a lot.

I had the rather odd experience of buying a house and having trouble getting a mortgage. My credit is incredibly good and I had enough assets to easily sell some stocks and pay cash. However, I had inherited money recently and I didn’t have an income stream. It got very complicated because my last year‘s tax return didn’t reflect the amount I inherited.

The quick version is I ended up setting a recurring payment out of my IRA to give myself an “income stream“. That lasted just so long as it took to get the mortgage. Luckily it was within 60 days and I could simply put the money back without paying taxes. But I was surprised at the complications, considering my assets and considering my credit score. So part of my reason of advising you not to pay it off is just to make it simple. You buy something new you sell that. You’re not talking about a long period of paying the mortgage on your current house.


I have almost gotten comfortable with having a mortgage... But it’s at 4.125% and my CPA thinks the interest will be deductible. I’ll know more in April, lol.
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Old 10-14-2018, 12:39 PM   #28
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I wouldn’t pay it off. For one thing you’re probably earning more than 4.5%, your mortgage rate, on your investments. ....
I think that the money that the OP would use to pay off the mortgage is sitting in a bank account.... probably earning next to nothing... so the OP will be almost 4.5% ahead.
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Old 10-14-2018, 01:00 PM   #29
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This is directed to the "don't pay it off because you are selling in two years" post. So what is the quantity of years that would change your mind to pay it off?
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