Buying past "prime" home buying years

[Anonymous]

Option 1. We refinanced to a 15 and I like knowing that we will have it paid off before our child goes to college so we can use the money for that. We pay a little extra to principal each month.

[Anonymous]

All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

[Anonymous]

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

Because some of us want our kids to have a good start to life and see the benefit. I cannot imagine kicking out an 18 year old. My kids know they will go to college and graduate school and we will help them as much as we can, just as my parents did for me. I don't want them to have massive loans or struggle when they don't have to. I would rather set them up to be successful and give them what they need to be successful.

[Anonymous]

Anonymous wrote:

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

Because some of us want our kids to have a good start to life and see the benefit. I cannot imagine kicking out an 18 year old. My kids know they will go to college and graduate school and we will help them as much as we can, just as my parents did for me. I don't want them to have massive loans or struggle when they don't have to. I would rather set them up to be successful and give them what they need to be successful.

NP here. How do you know having them stand on their own two feet at 18 isn't setting them up to be successful? Why assume that the only way to be successful is to give them everything so they don't ever have to be uncomfortable or work a little bit harder? I think some of our kids can learn a whole lot about life and being empathetic but not being handed a life from their parents. Just my 2 cents.

[Anonymous]

We are military and moved every 1-3 years. Did not buy our first uouse untile we were about your age.

We will be paying until our 70s if we stay in our home that long.

I doubt we will though. At some point we will sell and downsize, pay off the balance with the sale and hopefully have enough left over to pay cash for something much smaller in a warmer state with a low cost of living.

We can't predict 20-30 yeaes down the road, so do what makes sense for your family through retirement, then go from there.

[Anonymous]

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

White culture, throwing their own generation under the bus, boomers are hated

[Anonymous]

Anonymous wrote:It depends a lot on your goals and if you have family wealth or other assets. My husband is convinced it makes sense to never pay off a mortgage - much better to do a HELOC if needed or refinance and take cash out than to end up retired with too much $$$ in your house and faced with a reverse mortgage, which are rip-offs.

Does your DH remember the last recession? People just don't learn... don't go asking Uncle Sam to bail you out if he DH loses his job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

White culture, throwing their own generation under the bus, boomers are hated

Racist remark. How do you know they are white??

[Anonymous]

Surprised no one has mentioned inflation. Historically inflation has meant that your loan will be easier to pay in 10-30 years. The crazy inflation in the 70s and 80s was actually good for people who owed money because wages and prices went up but outstanding debt stayed the same. This is why moderate inflation is good for the economy - it encourages borrowing for growth - whereas deflation crushes borrowers.

In your case, if you are planning to work at least 20 years, I think you could take a 30 year mortgage with a plan of either refinancing later to a shorter loan (although unlikely rates will ever be this good) or just aiming to pay it down more aggressively as your wages rise so it is gone or mostly gone when you retire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most people in this area don't pay off their houses unless they bought before the 80s. They just sell and move to a cheaper area for retirement.

Not true. I'm a millennial with a 15 year mortgage, which I will pay off in my late 40s.

I personally wouldn't take on a mortgage I wouldn't have paid off until my 70s. I saw my parents' friends do this and it made a huge difference financially for them. I'd instead invest the money and stay in your current home or find a home you can afford on a 15 year mortgage.

I agree. It is not true to assume that people with paid off houses bought before the 1980's. That removes almost all born in the 1950's. People don't just move to a cheaper area for retirement. This isn't NY/NJ with the vast tax migration to FL. If VA taxes are lower than MD many stay in MD if near family etc. DE has low property taxes but PA does not have income taxes on pensions. People in NJ even stay there unless they move to PA - yes there is a flow there to escape income tax and even higher property taxes. Some PA people move to DE if better off for paying DE income tax v PA property tax.

Why do you think there are all those retirees in Lewes/Rehoboth?

OP owns a house and wants better public schools. It makes sense to move. OP has to look at the RE available. Prime earning years are in the forties and fifties

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

Because some of us want our kids to have a good start to life and see the benefit. I cannot imagine kicking out an 18 year old. My kids know they will go to college and graduate school and we will help them as much as we can, just as my parents did for me. I don't want them to have massive loans or struggle when they don't have to. I would rather set them up to be successful and give them what they need to be successful.

NP here. How do you know having them stand on their own two feet at 18 isn't setting them up to be successful? Why assume that the only way to be successful is to give them everything so they don't ever have to be uncomfortable or work a little bit harder? I think some of our kids can learn a whole lot about life and being empathetic but not being handed a life from their parents. Just my 2 cents.

If my house has 3 bedrooms and I pay utilities/taxes anyway why make a 22 year old get an apartment? Or do you plan to charge market rent for a room in your house?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:All of my kids move out and manage on their own at 18. It's a requirement in our house. It teaches them responsibility. I'm not sure why you would think that "kids" in their 20's would still be living with you. They aren't kids. They're adults.

White culture, throwing their own generation under the bus, boomers are hated

Racist remark. How do you know they are white??

That bolded comment is racist and offensive.

[Anonymous]

We did a 15 year mortgage (and bought a smaller/less expensive home to do so) and don't regret it one bit. It has been a blessing in our lives to be in the home - and with the expenses - we have.

[Anonymous]

Anonymous wrote:The safe choice would be to take the 30 year mortgage and pay extra each month as if it is a 15 year fixed. There will be months when you need the extra money for other purposes so you won't be tied to the higher monthly payment.

This. Use the money you make on your first house as a down payment on the second house. Then get a 30 year for the second house and make extra payments when you can to pay the loan down early.

You will probably have some form of income from 401Ks, pensions, social security, savings during your retirement years. So keep that in mind too.

[Anonymous]

OP, remember - your loan payment remains stable, so it will be easier to pay off over time due to inflation.

We bought in 1998, then refinanced into another 30 year loan about ten years ago at a 3% interest rate.

Right now, our P+I is approx. $1800. And that will stay the same as long we own the house.

Compare to that our non-fixed costs of owing the home - insurance, property taxes, utilities, repair. Even in a low-inflation decade, they have gone up significantly - they were about $600 per month a decade ago, and have gone up to about $900 a month now.

Extrapolate that fifteen years forward, when I expect to be retired, and my P+I will only be about half the cost of owning my home. Plus I will continue to deduct the interest from my taxes.

And if I need to be able to dip into my home equity, I can do so via HELOC.

So for me, paying off my home is pretty low on my financial to-do list.

You mileage may vary of course, depending upon your risk tolerance, the mortgage interest rate, your other savingts, etc. etc. But don't take it as a given that you have to pay off your mortgage.