I am sorry for your loss, I hope you are taking care of yourself. As others have already suggested do not rush into a decision.
The difference between current housing expense of $1938/mo vs $1500 to rent is not that significant and in a few years probably rent would become same and even more after that. Second, you can choose to sell the house anytime looking at his current financial situation it would be hard to buy a similar place down the road. In any decision, consider his longer term (at least 20 years) financial well being and more importantly getting him to a place where he can be more independent. Few thoughts:
The difference between current housing expense of $1938/mo vs $1500 to rent is not that significant and in a few years probably rent would become same and even more after that. Second, you can choose to sell the house anytime looking at his current financial situation it would be hard to buy a similar place down the road. In any decision, consider his longer term (at least 20 years) financial well being and more importantly getting him to a place where he can be more independent. Few thoughts:
- At this point, can he manage to pay $1938/mo and his other expenses with $40k a year income and a no more than 5% annual withdrawal rate? If he can, keep the house, see he can continue with current mortgage which at 4.99% seems pretty reasonable. I would avoid Option 3 - Keep the house. Pull some large amount from the ira to recast the mortgage.
- You would have to empty your mom's IRA account within next 10 years. Consider "moving" another 5% a year from IRA to his retirement account either a 401(k) and/or IRA and invest it in a diversified portfolio. As his income grows advise him to contribute more.
Statistics: Posted by viveks — Fri Dec 20, 2024 12:22 pm