Ask Terry Questions Rent vs. buy in your 50’s

Rent vs. buy in your 50’s

By Terry Savage on October 26, 2016 | Financial Planning / Retirement

Hi Terry- We have 2 kids in college and recently sold our house because it was too expensive to keep. My husband is looking for work and I have been a stay at home mom until now. We are trying to decide whether or not to buy a modest home, and use some of our savings for a 20% downpayment, for the tax benefits. Another choice would be to rent really cheap for the years while we are paying for college, but that feels like throwing money away. We have plenty in our 401k, just not a lot of liquid savings to bridge us over this time while the kids are in school and my husband isn't working. Advice? Thanks in Advance...

Terry Says

Well, I don't think you have much of a choice!  If you and your husband are unemployed, you won't be able to get a mortgage to purchase a house.  And if you don't have a job it could impact your ability to rent.  Most landlords ask for a job reference.  If you explain your situation you should be able to rent.  And that is probably your only choice.  However, given your current low income, your kids could qualify for substantial financial aid.  Maybe they should shoulder part of the burden.

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