Buying home at 70 years old
Hi Terry
I am 70 years old, want to relocate to warmer climate have approx 1M liquid, would it be wiser to pay cash or should I take a mortgage. I have no heirs so upon my demise, anything that”s left will go to charity. I am torn on this issue.
Thank you in advance for your opinion.
Terry Says
Well, first congratulations. Your money is yours to enjoy. A bit of advice: Pick not only a warmer climate, but a community where you can make friends. It’s nice to have company — AND, more importantly, friends who will be there for you in an emergency.
If you’re not working, you won’t be able to get a mortgage! So that decision is probably already made for you. If you are still working, ask about a 15 year mortgage because rates will be much lower, although the payment will be larger than a 30- year. Do the comparison.
And don’t use up all your liquidity on the purchase price. Save some in chicken money for emergencies.
