• Question
  • mortgage or rent

    Asked on 7/1/2009

    I owe $195000 on my $260000 house. I am 62 and drawing Social Security. I have some savings in retirement. My wife got laid off from IBM. Now should I sell the house and then rent. Or should I keep the house that's costing me around $1500 a month.

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  • Categories: Retirement Planning, Budgeting, Downsizing/Relocation, Social Security, Housing, IRAs

Answers

  • NewRetirement User

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  • In my opinion, if you have enough in your retirement, pay your house off and live off your social security. You shouldn't have to worry about paying your mortgage after retiring. If that isn't an option, know that there are pros and cons of moving into rental apartments or into senior housing.
    Cons;
    1) You'll have to disclose all or most of your income and or investments.
    2) You may have to give them the authority over your monthly rental payment fees.
    3) You'll give up your privacy.
    4) Less living space
    Pros;
    1) 24/7 medical care available (senior housing)
    2) Less stress pertaining to home maintenance
    3) Senior services availablity
    4) Less monthly fees
    I wish you the best in the choice you make.

  • Login to rate this answer:   Answered on 7/9/2009
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.