Should you keep your mortgage in retirement (and other real estate bits…)

Pay Off Mortgage Before Retirement? Maybe Not So Wise I do not agree with this approach. I am a firm believer that you should try to limit your expenses during retirement, but here’s an article with an alternate point of view. Some experts say it can make financial sense to enter your golden years with a mortgage. “The biggest thing from an analytical perspective is taking a look at what the mortgage is costing you after taxes,” says Jay Messing, senior director of planning at Wells Fargo Private Bank. “If you are able to earn a higher after-tax return on your investments than the mortgage is costing after taxes, then economically, you should keep the mortgage.”

Foreclosure Horror Story: Bank Of America Mortgage Modification Allegedly Goes Wrong Bank of America’s math is bad — real bad! Meet Grace Alexander, a 57-year-old Newark grandmother. Bank of America offered to “help” her save her home from foreclosure, but their offer will increase her monthly mortgage payment by more than $200.

We’re richer than ever, and scaling back on mortgage debt Canadians are in better financial shape today than they’ve ever been. Rising prices for home has played a key role. They value of stock portfolios is also up.  On a per-capita basis, net worth at the household level is now $222,600. Not bad at all for an average of all individuals in Canada.

Private lenders step into mortgage void left by banks Private lenders have been moving aggressively to fill a growing void in the wake of Canada’s tighter mortgage lending rules, offering loans to desperate homeowners that, with fees, can range from 12 to more than 30 per cent interest rates, leaving some people at risk of losing their properties.

Promoting Mortgage Preapprovals in Competitive Markets Smaller lenders are using preapprovals to attract borrowers in markets where competition for homes is fierce.

A preapproval is a written confirmation of the maximum loan amount for which a borrower qualifies, along with the likely interest rate, and shows sellers that a buyer has the financing to back up an offer. While not a firm commitment to lend, a preapproval offers more certainty than the less formal prequalification because it is based on the borrower’s income and assets, as well as a credit check.

Many large lenders offer only the less labor-intensive prequalification. But with refinancing activity way down, and purchase applications lagging behind expectations, some smaller lenders are offering preapprovals to get an edge on the competition early in the process. And in areas where inventory is low, buyer demand for preapprovals is high.

 

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