Mortgage Downpayments

[Anonymous]

I own a $225,000 home with no mortgage.  I am moving to another State and am buying a more modern home that will cost me $150,000 more.  It will also serve as my retirement home.  Should I take the money from my current home and put it all down on the next home?  I intend to work at least another 10 years and have substantial savings with no debt.

[Anonymous]

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@Anonymous wrote:

I own a $225,000 home with no mortgage. I am moving to another State and am buying a more modern home that will cost me $150,000 more. It will also serve as my retirement home. Should I take the money from my current home and put it all down on the next home? I intend to work at least another 10 years and have substantial savings with no debt.

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I would roll it all over into the new house-
If you did not have reserves set up and debt paid off I might suggest otherwise.

[Anonymous]

How much did your current home appreciate in the last 10 years? I would just rent it out for 10 years and let it appreciate some more if possible. I'd probably cash out the equity on it, put down maybe 5% on the new home, and then buy 2 or 3 other rental properties. Let them sit and appreciate for 10 years while renters pay the note, then sell and retire. But that's just me

[Anonymous]

Timothy - Thanks for the conservative approach - what I feel comfortable doing.  I know the house will be paid off before I retire so it will be a short-term mortgage.  Friends tell me to take a 30 year mortgage to keep the note low and then pay off when ready.  I've been looking at the rates and the interest is less on a 15 year loan.  Also - if you look at adjustable rates with caps, you can get it even lower.  That world is just so scary!  I'm single and can't count on someone else to help with rental property, as suggested below.  Nor can I count on someone elses investments or retirement income.  I think safe is best for me.  Louise