Home value and retirement planning

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. We may stay here.

Which brings up a question I've been pondering.

What if you either own outright or you've got tons of equity when you're retired, and you want access to some/lots/most of that equity but don't want to move. HELOC? (do they give HELOCs or cash-out refis to retirees with no income?) Reverse mortgages are pretty frowned upon these days. Does there turn out to be no real way to get at your home equity other than selling?

Do a regular cash out mortgage

[Anonymous]

Some lenders will give you a mortgage in retirement-- depends on things, such as if you can show a regular pattern of withdrawal etc. Sometimes it is hard.

[Anonymous]

just refi right before you retire, then stash the cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The value does not, but we want to pay off the mortgage before retirement to reduce expenses (realizing we will still have to pay taxes, repairs, utilities, etc).

+1

Which is why it makes sense to sell your home when you retire and rent - even if it is paid off. That eliminates two big unknowns - taxes and repairs.

It doesn't eliminate the unknown of rent increases.

[Anonymous]

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

If course it features. Are you budgeting for a mortgage payment in retirement?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

If course it features. Are you budgeting for a mortgage payment in retirement?

No, why would I? As you can see from my post, the house is already paid off and we won't need to use any of the equity for living expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The value does not, but we want to pay off the mortgage before retirement to reduce expenses (realizing we will still have to pay taxes, repairs, utilities, etc).

+1

Which is why it makes sense to sell your home when you retire and rent - even if it is paid off. That eliminates two big unknowns - taxes and repairs.

It doesn't eliminate the unknown of rent increases.

Or having to move again.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

Us too. We're 50, our home is valued at about $1.5M and we own it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

If course it features. Are you budgeting for a mortgage payment in retirement?

No, why would I? As you can see from my post, the house is already paid off and we won't need to use any of the equity for living expenses.

I.e. you won't have to plan for mortgage payments. It features in your planning.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Does the value of your home feature prominently in your retirement planning?

It features not at all. Our house is worth about $750,000 and it's paid off. We are both 50.

If course it features. Are you budgeting for a mortgage payment in retirement?

No, why would I? As you can see from my post, the house is already paid off and we won't need to use any of the equity for living expenses.

I.e. you won't have to plan for mortgage payments. It features in your planning.

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

[Anonymous]

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

It's all fine and good that this is your belief WRT to mortgages, but that has zero to do with whether mortgages/home equity are factored into retirement for most people. Or, ditto the PP above - you don't seem to know a lot about people outside your bubble.

[Anonymous]

So it factors into my retirement planning because we paid off our mortgage when we were in our 40s, so don't have to carry a mortgage into retirement 20 years later? Is that the point? I wouldn't retire if I still had a mortgage. Being mortgage -free now in our 50s, we save 40% of our net income, so we can retire sooner. Is that what you're looking for?