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Post by ToniW on May 15, 2018 3:41:54 GMT
Almost paid off the house, really want to retire in 6 months or so when it's paid off so I wouldn't have any major bills to pay. But I need to do some house repairs, repaint, update the heater.
My mind keeps going round and round. Take out a loan, refinance, reverse mortgage to pay for it all. I just can't figure out the best solution and have a headache just trying to sort it out.
So far, I've got: Figure out the expenses (would people put in bids?) Find out what the interest rate might be in loans or refinancing (what's the difference between the two?) Reverse Mortgage - thought about doing that, kids know about it.
What am I missing? Appreciate any suggestions, thanks!
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Post by femalebusiness on May 15, 2018 3:47:12 GMT
I would work for another year, sock money away after you have no mortgage payment. Retire and do all the painting yourself and have plenty of money to pay for updating the heater and the things you can't do yourself.
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Post by ~summer~ on May 15, 2018 3:49:45 GMT
I would also just work a little bit longer to pay for it all....
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Post by ToniW on May 15, 2018 3:53:19 GMT
Work another year after it's paid off?
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Post by ntsf on May 15, 2018 4:06:58 GMT
reverse mortgage is something to stay away from.. work another year if you can and put away mortgage money to do work. also, be sure you have saved a good amount for ongoing maintenance. it is hard to get contractors to give bids if you aren't doing the work right now.. because they have so much work they don't want to commit.. do as much as you can yourself.. like interior painting.
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Deleted
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Jul 1, 2024 3:01:20 GMT
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Post by Deleted on May 15, 2018 4:07:17 GMT
I would not do a reverse mortgage.
I would work long enough to sock away enough money to care for your house.
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Post by ToniW on May 15, 2018 4:09:20 GMT
OK, thanks! Crossing reverse mortgage off the list. Looking into it made me uneasy, so just as well.
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Deleted
Posts: 0
Jul 1, 2024 3:01:20 GMT
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Post by Deleted on May 15, 2018 4:14:53 GMT
I'd get a HELOC in place before you retire. One with no fees and you aren't required to do a minimum draw. I would also work as long as possible to help cover the repairs you are already anticipating plus to create a cushion for emergencies and unforeseen expenses.
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Post by ntsf on May 15, 2018 4:35:37 GMT
I'd get a HELOC in place before you retire. One with no fees and you aren't required to do a minimum draw. I would also work as long as possible to help cover the repairs you are already anticipating plus to create a cushion for emergencies and unforeseen expenses. Once you retire almost impossible to get house loan. So do that before. Read up on retirement issues.
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Post by ToniW on May 15, 2018 4:38:17 GMT
I'd get a HELOC in place before you retire. One with no fees and you aren't required to do a minimum draw. I would also work as long as possible to help cover the repairs you are already anticipating plus to create a cushion for emergencies and unforeseen expenses. Once you retire almost impossible to get house loan. So do that before. Read up on retirement issues. Could you please recommend where I'd find this information?
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Post by mom on May 15, 2018 4:54:11 GMT
There is no way I would even consider a reverse mortgage, loan or refinance.
I would work and cash flow all of it. Yes, you will be delayed in retiring. But there will be peace of mind knowing you don't have debt.
How much are you thinking you'd need to do your repairs?
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Post by Crack-a-lackin on May 15, 2018 4:58:40 GMT
Do you have enough in retirement to cover any future repairs you’re not taking care of now, since there will always be future repairs and maintenance needed. I’d work as long as I could to make sure I can cash flow repairs.
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Post by ntsf on May 15, 2018 4:59:17 GMT
look at aarp website. paul soloman.. reporter for NPR has a good book on social security.
make sure you have wills done, consult a financial advisor.
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Post by ToniW on May 15, 2018 6:05:40 GMT
thanks, I have a lot to research and think about
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Post by ScrapbookMyLife on May 15, 2018 7:40:42 GMT
Pay off the house. Delay retirement. Then continue to work, and pay the "mortgage payment" to savings.
Figure out what you need for currently needed repairs, then double it(or triple) (<< a nest egg, for unforeseeable future repairs and maintenance).
With the exception of the current mortgage payment, start living now on your future income(and save/bank the rest). Meaning.....when you retire, what is your expected income amount going to be? Example: If it's $2000.00 a month, then start living now on $2000.00 a month. See if you are able to manage, on that income and budget. See if you are struggling or comfortable, living on your retirement income. It's better to live on that income now and figure out your retirement budget, rather than retiring and realizing the monthly income isn't going to stretch as far as you need it to.
Make a list of any future unforeseeable expenses. Will you need a new car down the road? Have major car repairs? New kitchen appliances? A new air conditioner? A new roof? Higher priced items, that could severely impact, ones retirement income. Are you prepared for the unexpected?
If you retire, what are your retirement expectations? Travel?, how will you fund that?
Delaying retirement, for a couple years(or more) so that you can build an emergency nest egg, may be wise and prudent.
Signed: "She who wishes she knew then, what she knows now".
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Post by nlwilkins on May 15, 2018 7:45:26 GMT
Like the others said, work enough to get the money to do the repairs. PLUS enough to set up a fund to pay for future work. We own our home outright and if hubby was not proficient enough to do repairs and upkeep, we would be in big trouble as our pensions do not add up enough to pay off any loans for them. How old is your roof? how abut your plumbing? your air and heating system? think about all of it and then upgrade what you can afford. Make sure to get warranties on the work done. Or you might consider moving into a condo where it is all covered. That is what I am going to have to do if hubby passes before me, or be dependent on children to do the repairs.
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Post by ExpatBackHome on May 15, 2018 8:06:00 GMT
Don't do a reverse mortgage. I would pay off the house, then work until the updates are made. All money from work would go to pay for updates with cash, no loans. It would stink to work a little longer but you're so close. I wouldn't want to pay interest.
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eastcoastpea
Prolific Pea
Posts: 9,252
Jun 27, 2014 13:05:28 GMT
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Post by eastcoastpea on May 15, 2018 10:54:16 GMT
I'd keep working until after updates are done and you have some extra money in the bank for unforeseen expenses.
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Post by shescrafty on May 15, 2018 11:05:12 GMT
How old are you?
Figure out how much you would get when you retire monthly. Figure out al expenses-changes in insurance (current and future) , taxes (both personal and home), how adding a car payment or purchasing a car make guy impact you financially, etc.
Our home will be paid off in 7 years and our son out of college (hopefully! Lol) Paying off our home is barely a consideration in when we retire-it is all the other “stuff” that goes into it.
Have you spoken with a financial planner before now to really go over how much you will need to survive? We have it planned so that we will collect 80%of our income when we retire, and we are upping our investments so we will be ready sooner rather than later.
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Post by myboysnme on May 15, 2018 11:09:41 GMT
Crossing reverse mortgage off the list. Good choice! Many people don't realize if you have to be out of your house for 6 months, like in a rehab facility, they can and do take your house. You have to reside in it.
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purplebee
Drama Llama
Posts: 6,755
Jun 27, 2014 20:37:34 GMT
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Post by purplebee on May 15, 2018 11:14:20 GMT
Work a little longer, as suggested.
I'm 66, could retire, but decided to purchase our "retirement vehicle" - a 2017 Hyundai Tucson - last summer. Will work an additional two years making double payments to pay it off before retiring.
Good luck in your decision-making.
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peabay
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Posts: 9,678
Jun 25, 2014 19:50:41 GMT
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Post by peabay on May 15, 2018 11:18:30 GMT
OK, thanks! Crossing reverse mortgage off the list. Looking into it made me uneasy, so just as well.
Good! And I'm glad others beat me to it. Reverse mortgages are awful.
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kelly8875
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Oct 26, 2014 17:02:56 GMT
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Post by kelly8875 on May 15, 2018 13:02:03 GMT
Sounds like you have quite a bit to think about before you retire. You should have some sense of how much these repairs will cost you. You should be talking to your bank for options, along with a financial planner. Do you know how much you’re expecting to bring in monthly during retirement? Make sure that allows for these type of extras in life. House repairs, insurance, cars, travel, normal expenses...make sure it’s all covered, otherwise you need to keep working.
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Post by ToniW on May 15, 2018 14:07:50 GMT
Crossing reverse mortgage off the list. Good choice! Many people don't realize if you have to be out of your house for 6 months, like in a rehab facility, they can and do take your house. You have to reside in it. That's only if both are not in the house, right? If one is still there, they'd still be ok?
That's scary!
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Post by myboysnme on May 15, 2018 14:16:10 GMT
That's only if both are not in the house, right If one owner is still in the house they can keep the house. The other option the family has is to sell the house and pay off the mortgage but many times they are upside down in it
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SweetieBsMom
Pearl Clutcher
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Jun 25, 2014 19:55:12 GMT
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Post by SweetieBsMom on May 15, 2018 14:29:27 GMT
I would also just work a little bit longer to pay for it all.... I agree with this. I wouldn't incur more debt if I was planning to retire.
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Post by ToniW on May 15, 2018 14:38:25 GMT
I did plan on working a bit longer after the house was paid off, but I guess it would have to be longer than anticipated. Darn! I was hoping to quit before I got burned out.
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Deleted
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Jul 1, 2024 3:01:20 GMT
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Post by Deleted on May 15, 2018 14:44:37 GMT
If you feel you are burning out, would working until your mortgage is paid off and finding a lower paying/stress job an option? Perhaps taking in a roommate for rental income, selling your home and buying something smaller, or even renting out your home and moving into a less expensive apartment?
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dawnnikol
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'A life without books is a life not lived.' Jay Kristoff
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Sept 21, 2015 18:39:25 GMT
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Post by dawnnikol on May 15, 2018 14:58:10 GMT
Sell the house, skip the repairs, and move into an apartment/condo that keeps up with all the maintenance.
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Post by annabella on May 15, 2018 15:33:30 GMT
I would work for another year. I would not get a reverse mortgage under any condition. Downsizing to a condo could be an option.
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