3 ms·

Are you going to live in that house for 30 years? What’s your plan when you need to move?

coldpie 3y ago
Sure, why not? I can't speak for OP specifically, but generally living in the same house for decades is very common. I'm coming up on 15 years in my house with no plans to move, and most of my neighbors have been there even longer. My parents lived in the house I grew up in for 40 years until my father passed away and my mom needed to downsize. In any case, if they move, then the price of the home they are selling will have gone up (or down) more or less the same as everyone else's, so it basically works out to a wash.
tombert 3y ago
Even if I don't stay in the house for thirty years, it's still better as long as I stay for awhile. When I'm paying my mortgage payments, I'm building some degree of equity into the house, so the only "wasted" money is whatever I pay to interest. So my plan if I move is exactly what it sounds like: I sell the house and then buy a new one wherever I'm moving to. As long as I'm staying for like 5+ years at that location I think it's still worth it.
psunavy03 3y ago
The purpose of a 30-year fixed mortgage is to build up equity in a home you otherwise couldn't afford. If OP moves, they now only have to take on a smaller mortgage for their new home and then keep paying that new mortgage off. The goal is that by the time you reach retirement age, you have paid off the mortgage and own your home free and clear. Thus, you only have to pay the property taxes and have more financial security than someone who never built up equity because they always paid rent. Furthermore, if you have children, that home is potentially a source of generational wealth. They can sell it after you pass and invest the proceeds, or live in it themselves if they want. Worst case, if you find you didn't save enough for retirement, you can tap into the home equity to keep food on the table, although this is not optimal.
- pmg101 3y ago
  Isn't the common use case that the equity in your home can be exchanged for elder care in your latter years?
  - psunavy03 3y ago
    Depends on the size of someone's nest egg. The goal should arguably be to use your other investments first.
HeyLaughingBoy 3y ago
I might. I've lived in it for pretty damn close to 20 years at this point.

Sure, why not? I can't speak for OP specifically, but generally living in the same house for decades is very common. I'm coming up on 15 years in my house with no plans to move, and most of my neighbors have been there even longer. My parents lived in the house I grew up in for 40 years until my father passed away and my mom needed to downsize. In any case, if they move, then the price of the home they are selling will have gone up (or down) more or less the same as everyone else's, so it basically works out to a wash.

tombert 3y ago

Even if I don't stay in the house for thirty years, it's still better as long as I stay for awhile. When I'm paying my mortgage payments, I'm building some degree of equity into the house, so the only "wasted" money is whatever I pay to interest. So my plan if I move is exactly what it sounds like: I sell the house and then buy a new one wherever I'm moving to. As long as I'm staying for like 5+ years at that location I think it's still worth it.

psunavy03 3y ago

The purpose of a 30-year fixed mortgage is to build up equity in a home you otherwise couldn't afford. If OP moves, they now only have to take on a smaller mortgage for their new home and then keep paying that new mortgage off. The goal is that by the time you reach retirement age, you have paid off the mortgage and own your home free and clear. Thus, you only have to pay the property taxes and have more financial security than someone who never built up equity because they always paid rent. Furthermore, if you have children, that home is potentially a source of generational wealth. They can sell it after you pass and invest the proceeds, or live in it themselves if they want. Worst case, if you find you didn't save enough for retirement, you can tap into the home equity to keep food on the table, although this is not optimal.

pmg101 3y ago
Isn't the common use case that the equity in your home can be exchanged for elder care in your latter years?
- psunavy03 3y ago
  Depends on the size of someone's nest egg. The goal should arguably be to use your other investments first.

HeyLaughingBoy 3y ago

I might. I've lived in it for pretty damn close to 20 years at this point.