# How much should we put down on a home at our age?



## Colleen (Nov 15, 2021)

I've been trying to read a lot about down payments, like should I put 10% down or 20% down, etc. Everything I've read seems to be geared toward the younger population but not much information for us seniors. I've used all kinds of bank calculators online and know how much house we can afford.

My husband and I got started late in life with home buying (we were in our mid 50's) and have moved around a lot so paying off a home has never been a goal.

We're planning to relocate out of state in the Spring and I've been trying to figure out how much we should put down on a home. Since my husband is 81 and I'm 75, would it be better to put down 10% and have a PMI or should we do the 20% down with no PMI?

We know that we don't want to rent, so buying is our choice but we know we won't ever pay it off. We want to have money in the bank for ourselves so paying cash isn't an option.

In the past, we've never been able to put 20% down so we always had PMI, but this time, we do have the 20% but we're wondering if we should do it.

What's your opinions?


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## Myquest55 (Nov 15, 2021)

I would suggest that you ask your Realtor.  It is a different amount for different markets.  That said - Putting as much down as you can, will lower your monthly payments.  You should look at your cash flow to see what kind of payment you can sustain on your income, and work backwards.  One word of caution:  You will hope that the value of the house will increase over time but that isn't always the case.  Friends of ours ended up bringing cash to the closing sale of their house so they could pay off their mortgage.  The sale price didn't cover it all.  Just be aware and take a good look at the market where you're buying.

We started with a small home in the early 1980s and have bought and sold along the way as we slowly moved up in the world and moved around the country.  We're now in a good position as we down-size.  I have never had aspirations to pay off my mortgage!  It is the one tax deduction still allowed and we always paid it off when we sold it and used the cash to buy another one.

Have you thought of a Retirement Community (CCRC)?  A buy-in there would guarantee that your heirs get the money back, but that is a large chunk of cash up front.  You might also consider continuing to rent - especially if you don't have children who may, or may not want to deal with inheriting a house.  That keeps the $$ in your pocket.


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## Jace (Nov 15, 2021)

Colleen said:


> I've been trying to read a lot about down payments, like should I put 10% down or 20% down, etc. Everything I've read seems to be geared toward the younger population but not much information for us seniors. I've used all kinds of bank calculators online and know how much house we can afford.
> 
> My husband and I got started late in life with home buying (we were in our mid 50's) and have moved around a lot so paying off a home has never been a goal.
> 
> ...


Hi! This may be too personal..and I would understand if you prefer not to answer.
If your husband is a veteran..a VA loan..has a low % downpayment..in the past...I think I had heard like 2 - 3 %..
But I don't know any other particulars...but you could "check it out".
Good Luck!


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## Packerjohn (Nov 15, 2021)

Sorry but I can't help you here.  I have been a home owner and handyman all my adult life.  For the last 4 years I have been a renter and love it.  Can't imagine the "fun" of cleaning driveways, cutting the lawn, washing windows or whatever is needed around the house when one is in their 70s or 80s.  Best of luck thought.  Live your dream as life is kinda short!


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## Colleen (Nov 15, 2021)

Packerjohn said:


> Sorry but I can't help you here.  I have been a home owner and handyman all my adult life.  For the last 4 years I have been a renter and love it.  Can't imagine the "fun" of cleaning driveways, cutting the lawn, washing windows or whatever is needed around the house when one is in their 70s or 80s.  Best of luck thought.  Live your dream as life is kinda short!


Renting is not an option for us. Most places are small and we both have hobbies that need room to do what we like. My husband enjoys outdoor "work" and it keeps him active. Besides, there's always someone to hire for certain jobs that he/we don't want to do any more.


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## fmdog44 (Nov 15, 2021)

Why not try to rent a home with stipulations that you do the work and maintenance?


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## Packerjohn (Nov 16, 2021)

Colleen said:


> Renting is not an option for us. Most places are small and we both have hobbies that need room to do what we like. My husband enjoys outdoor "work" and it keeps him active. Besides, there's always someone to hire for certain jobs that he/we don't want to do any more.


As long as you are healthy and enjoy "puttering" around the house, go for it.  It's being active and having hobbies that will keep you young thinking and a pretty good chance of extending your life.  People that watch TV all day end up in a care home often.  I read this morning that the average person only lives 18 months in a care home.  I'm talking about Canada.  You are asking where do they go after that?  To the funeral home; I'm sorry to say.  I also read that almost everyone wants to live and die in their own homes.  Seems to me that you good folks know what your doing.  Good luck and have fun!


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## Jace (Nov 16, 2021)

Depending on location, some rent(s) are as much as a monthly house payment..and you don't have a tax write off.


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## palides2021 (Nov 23, 2021)

When we bought our home a few years back, we made a 20% down payment. Like someone else said, it will lower your mortgage payments and you wouldn't have to pay PMI. Here is a site that explains how much you will gain by going this route. 
https://www.zillow.com/mortgage-learning/20-percent-down-payment/

Also, we were keen on paying off our mortgage and we did it so that when my husband retired, we could live easily off of the fixed income. This was the best decision we made. After he passed away, I was able to keep the house without worrying about how to meet the mortgage payments. The house was paid off. Just my two bits.


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