Author Topic: Sell house or stay and pay  (Read 1055 times)

prudence

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Sell house or stay and pay
« on: December 02, 2014, 02:24:28 PM »
I am half way to FI, and paying down the home I bought 6 years ago, post divorce.
The house is a small cape in a high COL area. Itís worth about 300k, but I owe 197k on it.
I will probably stay until my youngest child graduates high school (4 years).  At that point I will owe roughly 130k on it. I would like to Fire in 5 years, but I feel like owing that much will hold me back.
Do I keep the house and pay it off for retirement stability, or sell it and rent? It would seem more stable to own your own home in retirement, but I also believe the rate of return on the equity if it was invested, would give me a much better ROI.

I could focus on paying it off sooner, but I would rather load up the retirement funds. The mortgage is a 15 year fixed @ 2.5 % .

What is the consensus on owning vs renting and is it worth postponing FI?

Rein1987

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Re: Sell house or stay and pay
« Reply #1 on: December 02, 2014, 04:32:47 PM »
I would suggest pay off the house at the day of your retirement, so you do not need to worry about housing during your retirement. If you cannot afford to pay it off, maybe you should consider downgrade your house to retire...

mozar

  • Magnum Stache
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Re: Sell house or stay and pay
« Reply #2 on: December 02, 2014, 07:01:28 PM »
Can you rent a room when your child moves out? Your going to have to pay rent or a mortgage. Like always it depends on if its cheaper to rent or buy.