Thoughts on starting a 30yr mortgage at 50 yrs old?

[morrismc]

Merry Christmas, y’all.

The short version is that life is starting to get really cramped for my wife and I and two little kids in our small one-bathroom house, and it’s only gonna get more so as the kids grow up. The ability to expand the house is very limited for property line and steep grade reasons.

If I started a new mortgage, I’d expect to only be in the new house for about 15 yrs and then sell it and downsize.

What are the general thoughts about pros and cons and my ability to retire while I can still enjoy it?

 

[mikpat]

@morrismc You’re either renting from a landlord or renting from the bank. Might as well have an opportunity for some equity by renting from the bank

 

[wickedknee]

@mikpat Unfortunately with current mortgage rates, it’s often much more expensive to buy vs rent.

 

[christiecu3]

@wickedknee I love how people think that mortgage rates go up but rental rates will remain the same. Also there is not enough information in this post for you to determine whether it’s more expensive to buy vs rent for OP.

 

[galapagoschange31]

@mikpat And renting from county with property tax lol

 

[klpotte3]

@galapagoschange31 The house would be worthless without the property tax funding the local schools.

 

[curiouscate]

@klpotte3 Not sure why you’re being downvoted. What some people don’t understand is that you’re paying property taxes when you rent also. Your landlord’s property taxes.

 

[balkan]

@curiouscate Comment is being downvoted as there are properties in the hood that are still being taxed on and are worthless. Property tax doesn’t automatically mean value.

 

[deeppeace]

@curiouscate Higher property taxes at that. You only get a break if you're living there.

 

[mrkurns]

@klpotte3 Brief which ever way we turn, we will be forever screwed by the system. Screwed by landlords, by banks, by the state, by the Fed, by irs. It is expensive to be poor nowdays

 

[thetruthalonewemustobey]

@mikpat That’s always the tag line people go, and I hate it. The real answer should be: your rent is the maximum you’ll pay for housing, your mortgage is the minimum you’ll pay for housing.

Everyone has such rose colored glasses about the housing market from the last 10 years where pretty much any house in any market saw huge appreciation. That’s unlikely to be the case going forward, so you should buy if you budget allows for it, forgot all the nonsense about building equity.

 

[bette101]

@thetruthalonewemustobey Renting is a great way to stay perpetually poor. The line doesn’t even make sense. Renting is the maximum you’ll pay for housing…. this year and then you sign a new yearly lease. And you’ll be paying it for the rest of your life. A mortgage is the actual maximum you’ll pay for housing, and it’ll end eventually. Yes you have maintenance costs, and you’re paying them when you rent too, it’s just all in one payment.

 

[mikpat]

@thetruthalonewemustobey I dunno, I’ve owned 8 homes in the last 20 years. Haven’t lost on one yet. We keep hearing the bubble will burst, but I’ve yet to see it. Sure, rose-colored glasses, but for me personally, I’m willing to take the gamble

 

[theblackmist]

@thetruthalonewemustobey Your rent is the maximum you will pay this year until your rent is raised next year. Truly terrible take.

 

[diesel24v]

@thetruthalonewemustobey I mean is it really true if your rent goes up every year?

 

[carold55]

@diesel24v Most places, yeah. Unless you’re living in a place with a small private landlord, they sometimes don’t raise rent every year, but most of the time they do. Source: rented for 15+ years.

 

[pluemusica]

@morrismc 30 year mortgages don’t have to be paid off in 30 years.

 

[tornero]

@pluemusica 30 year mortgages don't have to be paid off in 30 years.

Came here to say this! My parents shortened their mortgage by EIGHT years by adding $100/month. They taught me a valuable lesson, I shortened our last vehicle payment by 14 months doing the same.

 

[blueblur777]

@tornero can you give an example of the car payment? so instead of $300 per month, you paid $400?