too old to buy a home?

[Dancing Fire]

are there a certain point in life when it is too late for a couple to carry a mortgage?

 

[Hudson_Hawk]

It depends on how much the mortgage is for. I think most people work towards paying off their house before they retire so they don''t have to worry about a mortgage or paying rent. However, I do understand that there are some situations where this is not possible. If my parents were in this situation I''d like them to find a comfortable but small place that would allow them to take out the smallest mortgage possible without having to really dip into their cash savings. I don''t know enough about reverse mortgages to be able to say pay cash and take a RM for income...

 

[Clio]

For me, yes, as I want to have the house paid off well before I retire.

 

[Dancing Fire]

Date: 3/15/2010 12:54:52 PM
Author: Hudson_Hawk
It depends on how much the mortgage is for. I think most people work towards paying off their house before they retire so they don''t have to worry about a mortgage or paying rent. However, I do understand that there are some situations where this is not possible. If my parents were in this situation I''d like them to find a comfortable but small place that would allow them to take out the smallest mortgage possible without having to really dip into their cash savings. I don''t know enough about reverse mortgages to be able to say pay cash and take a RM for income...

RM is a big scam. you don''t receive cash forever.

 

[PumpkinPie]

for myself, definitely - I want our mortgage paid off before we retire with healthy savings too !

 

[cara]

If the older person has a nice stream of retirement income that will easily cover the mortgage and allow for comfortable life also it can be fine. Certainly age should be a factor in how big a mortgage one takes on, but it can be compensated by non-wage income sources and savings. Counting on working construction until you''re 100 is probably not a good plan, for example.

 

[PumpkinPie]

that''s true - there are always factors to consider.. but I would think *most* people (considering the article I read last week about (the lack of) North American retirement savings!) don''t and won''t have that kind of income in retirement.

 

[studyer83]

Some debt, esp. mortgage debt, might be tax and leverage efficient. But only for those who can plan like that & have cash reserves to make payments in case of emergency/health changes.

For many people, though, a paid-off house makes retirement possible.

I''m curious to see how long of a mortgage a bank will write for a 70-80 year old. Especially a single person -- no cosigner. etc. to stick the bill with (morbid, I know).

 

[Steel]

Of course, unless you can guarantee to the mortgage company that you can stave off death or are ''of means'' and can afford the house outright and guarantee your own mortgage!

Gotta secret you care to share DF?

 

[Dancing Fire]

Date: 3/17/2010 6:09:28 PM
Author: Steal



Of course, unless you can guarantee to the mortgage company that you can stave off death or are 'of means' and can afford the house outright and guarantee your own mortgage!

Gotta secret you care to share DF?

no secret, i have a friend whom just bought his first house at the age of 48. i ask him...are you plan on working til you are 78 yrs old?