Anonymous
Post 11/30/2023 06:25     Subject: New mortgage at 45?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Take out a 30Y and pay down extra principal every month (akin to a 20Y loan).

This gives you extra breathing room in case you ever need to pay the minimum due to job loss, a serious illness, etc. Plus you'll reduce your lifetime interest expense at these awful rates.


Good lord. Lemme guess, you're younger than 40?


Huh? I'm not the PP, but I've also heard and read this same advice from multiple sources and it makes logical sense. Get the 30, pay extra on the principal with each payment.


Sorry - I meant to bold "awful interest rates" - anyone who thinks these rates are "awful" has limited experience/historical perspective.
Anonymous
Post 11/30/2023 06:15     Subject: Re:New mortgage at 45?
Refinanced at age 65 to a 2.875% 30 year. The mortgage simply secures the debt.
Anonymous
Post 11/29/2023 23:37     Subject: New mortgage at 45?
Anonymous wrote:I took out a 30 year at 55. So what.


Same. My folks took on a new mortgage at 70+ with naca. 1% rate they got 2 years ago. My grandfather died at 97. Grandma on my moms side also 96. So I expect them to pay it off and maybe one of the kids will continue the payments and keep it.
Anonymous
Post 11/29/2023 23:21     Subject: New mortgage at 45?
Didn't you ask this question a couple weeks ago?

We took out a 30 year mortgage at 45 and 47. Of course, we used equity from our first home to buy our second home, so the mortgage is still pretty affordable and we just extended what we already had by 10 years plus $500/month.
Anonymous
Post 11/29/2023 22:17     Subject: New mortgage at 45?
We got a new house at ages 44/45 in January 23. I doubt we'll live in the house 30 years and we'll sell when we retire and downsize. But for now we need the bigger house for our family. This is my third house in 11 years slowly moving up the property ladder and I've realized I probably will never live in the same place for 30 years.
Anonymous
Post 11/29/2023 21:29     Subject: New mortgage at 45?
Anonymous wrote:Can you put chunks of money toward paying it down? We can do that on ours for $150 to "reset" our mortgage each time. Same rate, only with less owed. It significantly reduces the interest paid over the life of the loan. We hope to pay it off completely in a few years.


Are you just paying an extra $150 each month? What do you mean by paying $150 to “reset” each time?
Anonymous
Post 11/29/2023 18:06     Subject: New mortgage at 45?
No, why? You can sell the house at anytime and use the proceeds to pay off the loan. You don’t need to stay for 30 years. As long as your house doesn’t decline too much in value.
Anonymous
Post 11/29/2023 17:39     Subject: New mortgage at 45?
Anonymous wrote:I took out a 30 year at 55. So what.


Similar, but I was 52. Better that than going into retirement as a renter.
Anonymous
Post 11/29/2023 17:34     Subject: New mortgage at 45?
Anonymous wrote:Only reason it is stupid is because of interest rates . If you're able to afford the payments long term including into retirement, fine. If you plan to sell the house at some point, fine. And if you are able to pay ahead to end the mortgage early...fine.

My 70+ year old parents have enough cash in the bank to pay off their house, but their 3 figure house payment (refinanced I dont want to know how many times since the mid-80s) is extremely doable.


This is me except we are in our sixties. Mortgage rate 2.3percent
Anonymous
Post 11/29/2023 17:32     Subject: New mortgage at 45?
Anonymous wrote:
Anonymous wrote:Take out a 30Y and pay down extra principal every month (akin to a 20Y loan).

This gives you extra breathing room in case you ever need to pay the minimum due to job loss, a serious illness, etc. Plus you'll reduce your lifetime interest expense at these awful rates.


Good lord. Lemme guess, you're younger than 40?


Huh? I'm not the PP, but I've also heard and read this same advice from multiple sources and it makes logical sense. Get the 30, pay extra on the principal with each payment.
Anonymous
Post 11/29/2023 16:00     Subject: New mortgage at 45?
Anonymous wrote:Take out a 30Y and pay down extra principal every month (akin to a 20Y loan).

This gives you extra breathing room in case you ever need to pay the minimum due to job loss, a serious illness, etc. Plus you'll reduce your lifetime interest expense at these awful rates.


Good lord. Lemme guess, you're younger than 40?
Anonymous
Post 11/29/2023 15:59     Subject: New mortgage at 45?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:What’s the alternative?


There's no way to answer OP's question without an answer to this. Is it stupid to take out a new mortgage for a modest first house? Is it stupid to live in a paid off house and take out a $1.5m mortgage on a new place because you want something nicer? Very different answers.


Not really. The financial impact of the mortgage is the same.


Sure. But one is a case of incurring a significant cost just to upgrade, and the other is for a first home purchase. What may be acceptable in one context may be lunacy in another.
Anonymous
Post 11/29/2023 15:59     Subject: New mortgage at 45?
Anonymous wrote:Do a 15 year mortgage or pay in extra every month.


For reasons a PP already posted, I would to do this. Get the 30 year and pay extra each month on that.
Anonymous
Post 11/29/2023 15:58     Subject: New mortgage at 45?
Can you put chunks of money toward paying it down? We can do that on ours for $150 to "reset" our mortgage each time. Same rate, only with less owed. It significantly reduces the interest paid over the life of the loan. We hope to pay it off completely in a few years.
Anonymous
Post 11/29/2023 15:58     Subject: New mortgage at 45?
Do a 15 year mortgage or pay in extra every month.