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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My wife & I are both 56 yrs old. We want to buy a house in

Resolved Question:

My wife & I are both 56 yrs old. We want to buy a house in the 380k range. My general health is good, my wife has MS which is currently being managed with medication. Our house should sell for 250k. We currently have zero debt. Together earn 150k/yr.We have investments valued at roughly 1.2 M & about 150k in cash. Are we crazy?
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.

MyVirtualCPA :

Thank you for your question, and thanks for using JustAnswer.com

MyVirtualCPA :

How are you today?

MyVirtualCPA :

Based on the information you have told me, you would be able to afford a house for $380,000 - as you will have more than enough for a decent down payment.

MyVirtualCPA :

I would put the entire amount of the sale of your current home into the purchase of the new home.

MyVirtualCPA :

I would say that you are most definitely NOT crazy.

MyVirtualCPA :

It's a very reasonable endeavor

Customer:

Well thank you. My wife will be happy to see your answer. I'm just a little nervous about doing it. I'm a pretty conservative guy. I currently put 23% in my 401k & I worry about taxes & insurance on that value of property

MyVirtualCPA :

Well, depending on your area insurance should be between $1,200 and $2,000 a year or so - I don't know about property taxes, but with your income you could afford several hundred dollars a month. Plus, the real estate taxes and interest on the mortgage loan are tax deductible.

MyVirtualCPA :

so you will get some savings off the back end, if your interest and taxes are more than the standard deduction

MyVirtualCPA :

You could have the home paid for in no time, if you wanted to aggressively pay down your mortgage debt

Customer:

Thanks very much

MyVirtualCPA :

You're welcome. Do you need anything else additional?

Customer:

Thank you

Megan C and other Finance Specialists are ready to help you
Expert:  Megan C replied 3 years ago.
Thank you, Dee for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.