I’m 50 years old and thinking of buying a house. Should I avoid 30-year mortgages because I don’t know if I’ll be alive in 30 years?
Answers | 10
That's a bit of a loaded question, but an essential one for someone in your situation. It really depends on your lifestyle, retirement plans, assets, and of course, health. I do think it is a broader question that should include your financial adviser and accountant, however here are a few tips from a mortgage professional...
A 30Y fixed will provide you the most stability and comfort. True, you may be paying more in interest, however depending on all of the factors above, this may be a good choice. Furthermore, though you may pay higher interest, you can generally deduct a higher amount from your taxes (talk to your qualified tax adviser).
A more aggressive loan such as an ARM or a line of credit will provide you with a lower payment, more interest savings however they come with more volatility.
The good news is that you can always look to refinance out of any of these suggestions and into the other if you see it is not working for you.
I have no idea if I will be alive in 30 years either but I do know that I have lived responsibly and my family is taken care of financially. to the best of my ability. Ask me in 30 years and we can compare stories.
Do you need a house? Many of our clients own them and others rent using the cash flows from their investments. Every situation is different. so, rather than give you the pros & cons to renting vs owning, I will just share my insight on cash flows that you can use to buy or rent.
With $300K portfolio, we can generate cash flows of $60K/yr or higher. The amount varies and this is on a yearly basis. Will this work for you? No idea. We can customize something for you. Just let us know what you have to work with. Give us a call to discuss your situation in greater detail. No obligation. Our focus is on equity financing,. This gives you wealth creation not wealth redistribution. Many folks find it very difficult to afford debt financing after they have refinanced the debt and created more debt.
It's not what you make, It's what you keep that determines your lifestyle