Ask Terry Questions Best choice to finance a new home purchase without having to sell first

Best choice to finance a new home purchase without having to sell first

By Terry Savage on June 10, 2023 | Housing / Real Estate

We would like to have funds available ($400K total) to purchase a more livable forever home. We are 62 and 64 years old, retired but not yet drawing Social Security, own our current home outright ($500K), have a healthy investment portfolio with Schwab and a decent sized 457K account, have $135K of “ready cash” in Roths and savings, and only $2020 net in monthly pension income. We are considering the pros and cons of HELOC, asset-based or bridge loan or cashing out some retirement accounts (to make up the difference). Which option seems wisest to you?

Terry Says

Whoa. Getting a new mortgage might not be so easy if you are both retired and have little regular income. You need to get pre-approved for a mortgage for your new purchase. And you might want to be sure you can sell your existing home first. There’s nothing worse than having to pay a mortgage on two homes at the same time!
Contact your bank, or my friend Leslie Struthers at Guaranteed Rate. Her email is Leslie@rate.com. She can give you specifics.

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