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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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I am 64 yrs old . Currently employed and renting at 1,300/

Customer Question

I am 64 yrs old . Currently employed and renting at 1,300/ month. I am thinking of buying a condo for 55k and liquidating a 401k to buy the unit for cash instead of obtaining a mortgage. I should realize a savings of $800.00 /month after the purchase. My thinking is that even after the 20% tax withholding, I should still be better off then paying mortgage fees and interest. I can retire in 18 months and would like to be debt free. Am I thinking of everything ? or Am I missing something ?
Submitted: 1 year ago.
Category: Tax
Expert:  JACUSTOMER-8nme36c9- replied 1 year ago.
Hello,This is an option. There is also a tax benefit to filing schedule A - Itemized deductions. The mortgage interest and real estate tax would be a deduction. It would allow you to claim all deductions available on schedule A. I recommend crunching the numbers for both scenarios and see which saves you more money in the end.