Home Buying in 29745>Question Details

Angela Agres…, Home Buyer in Springfield, SC

I am retired 70 yrs. old should I pay cash for a home of about $160,000 or pay down 50% and take out a 5-10yrs. mortgage ? Thanks Ron

Asked by Angela Agresta, Springfield, SC Fri May 18, 2012

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Good evening, Angela (Ron?)
I have several clients at your age who are selling homes and making plans for distribution of their estates. They are focused on passing wealth to heirs in a way that allows them to continue to qualify for medical and other retirement benefits. If maximizing the amount you pass to heirs or your favorite charity is a goal, then hiring a tax attorney or certified financial planner for some advice would be a wise investment prior to purchasing a home.

If you are not concerned about passing your estate in a way that maximizes its value, then maintaining cash reserves may be your next consideration. If you have a decent pension or retirement income, and $160,000 is most of your available cash, it would be wise to get a mortgage at today's low interest rates and conserve cash for unforeseen events. If you have significantly more than $160,000 so that money is not really a problem, then you probably would not be asking the question. Speaking with a financial planner about the best place to invest your cash to maintain it's value would also be wise. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click..
1 vote Thank Flag Link Fri May 18, 2012
Thanks best answer really appreciate.
Flag Sat May 19, 2012
Please check with a financial adviser. Paying cash is not always the best plan but in some cases it may be. There are a lot of factors at play including your financial health, the return you are getting on any investments and your physical health. An adviser can certainly help you make the best decision. Good luck and I hope you enjoy your new home.
1 vote Thank Flag Link Fri May 18, 2012
Thanks I appreciate
Flag Sat May 19, 2012
I think you have to decided what is best for you. Certainly we all like to be debt free. You also have to consider that mortgatge rates are low . Have you consider this option. put 20% down, that way you do not have to pay PMI insurance. Then instead of using your cash get a mortgage, but take the cash you were going to use and put it in a seperate account marked house. That way, you can write the interest off on your home, get interest on the mony you set aside. If you ever get tired of making payment, then you have the homey to pay off the home.
0 votes Thank Flag Link Sun Jan 6, 2013
You may want to contact your accountant to figure out what would be best for you. It depends on your situation and goals. You will need financial advice to help figure tht out.
0 votes Thank Flag Link Fri May 18, 2012
Thanks I appreciate
Flag Sat May 19, 2012
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