AlaskaHunter
Well-known member
Our Alaska home mortgage was paid off years ago.
Now that we are retired, we are looking at purchasing a winter home in the lower-48,
keeping our Alaska home for summers, renting the downstairs and staying upstairs for 3 months/year.
The "winter home" will be our primary home.
There are 2 options:
1) Pay cash from retirement funds
2) Traditional mortgage
With interest rates on traditional mortgage 3.5-4.5%,
leaving money in the retirement 401k to grow with an average return of 6-8%
it seems that the traditional mortgage is a better choice than cash.
The other advantages are low 12% income tax bracket and
saving >$25k per year in Obamacare-subsidized health insurance.
Thoughts?
Now that we are retired, we are looking at purchasing a winter home in the lower-48,
keeping our Alaska home for summers, renting the downstairs and staying upstairs for 3 months/year.
The "winter home" will be our primary home.
There are 2 options:
1) Pay cash from retirement funds
2) Traditional mortgage
With interest rates on traditional mortgage 3.5-4.5%,
leaving money in the retirement 401k to grow with an average return of 6-8%
it seems that the traditional mortgage is a better choice than cash.
The other advantages are low 12% income tax bracket and
saving >$25k per year in Obamacare-subsidized health insurance.
Thoughts?