Financing home purchase in retirement

[Anonymous]

Anonymous wrote:

Anonymous wrote:What are you doing for health insurance?

Not op, but our company allows us to stay on their insurance at our current subsidized rate until we are 65 if you have sufficient years of service (age+years of service = 80). I will hit that at 58, but plan to retire at 62.

That is a fantastic benefit that few people in the private sector have.

[Anonymous]

OP here.

My employer provides health insurance benefits to retirees after 10 years, so I am eligible for that. The company contributes slightly less than they do for employees, but it is still very reasonable. We will not get any pension benefits.

[Anonymous]

I would stop contributing to the 402K over any matched %. Then start withdrawing at 59 1/2 to build up a down payment for the few years until you need it. I’d talk to your financial planner on the best way to minimize your taxes on the withdrawals.

[Anonymous]

How do you have so much in your 401k’s??

[Anonymous]

Put money into paying off your current home. Then when you sell you can buy the new home within a year (using cash) without incurring any taxes on the money. You won't have to finance the next home so will save money on finance interest charges.

[Anonymous]

All of you are wrong and offering terrible advice except for one: the poster who said to talk to a loan officer.

We refinanced our mortgage and also bought an investment property in our (early) retirement with no virtually no income stream beyond our brokerage account and large 401k. We have everything with Schwab and they own Rocket Mortgage. You get what’s called an asset depletion loan:

https://themortgagereports.com/68921/asset-depletion-mortgage-how-it-works

[Anonymous]

Anonymous wrote:All of you are wrong and offering terrible advice except for one: the poster who said to talk to a loan officer.

We refinanced our mortgage and also bought an investment property in our (early) retirement with no virtually no income stream beyond our brokerage account and large 401k. We have everything with Schwab and they own Rocket Mortgage. You get what’s called an asset depletion loan:

https://themortgagereports.com/68921/asset-depletion-mortgage-how-it-works

Key word is “depletion” which is not what OP wants to do. Any other ideas Einstein?

[Anonymous]

Anonymous wrote:
Put money into paying off your current home. Then when you sell you can buy the new home within a year (using cash) without incurring any taxes on the money. You won't have to finance the next home so will save money on finance interest charges.

no you can’t. You get $250k profit for each person. If your house increased by more than that, you have to pay capital gains.

[Anonymous]

Anonymous wrote:

Anonymous wrote:All of you are wrong and offering terrible advice except for one: the poster who said to talk to a loan officer.

We refinanced our mortgage and also bought an investment property in our (early) retirement with no virtually no income stream beyond our brokerage account and large 401k. We have everything with Schwab and they own Rocket Mortgage. You get what’s called an asset depletion loan:

https://themortgagereports.com/68921/asset-depletion-mortgage-how-it-works

Key word is “depletion” which is not what OP wants to do. Any other ideas Einstein?

Well, one of us is a moron that’s for sure — but it ain’t me. Do you even READ the link a sent? An asset “depletion” loan doesn’t mean you actually have to “deplete” your assets, idiot.

[Anonymous]

To follow up for the benefit of the moron who wouldn’t even bother to read the link, an asset depletion loan is basically where the lender calculates how much of a monthly mortgage payment you can qualify for on the basis of income generated from your assets. Typically they don’t count everything at 100 percent - they’ll typically count your 401k at around 70 percent.

So, to be very conservative, if OP has 7.5 million in liquid assets, including the 401k, a lender will take, say 5 million of that and divide it by 360 (for a 30 year loan) and arrive at more or less 14k. It’ll then treat the 14k as a monthly income and qualify you for whatever mortgage someone can qualify for making 14k a month.

No actual “depletion” required, douche bag.

[Anonymous]

Anonymous wrote:How do you have so much in your 401k’s??

Some companies give big matches.

[Anonymous]

Way too much money in 401k taxes as ordinary income. Should have stopped contributing past the match long ago.
Getting a mortgage is not a problem. Someone will give it to you.
You need to be your own advisor and figure out how to start lowering taxes on it all.