Retired looking for a mortgage

adlin20 wrote:

Rey, if it helps, my dad is a retired military and he just refinance his house in PR thru banco santardent.

Good luck either way you can get a good deal on the house. Also, house payment will be less for the same amount in the island than in the mainland because the escrow will be minimal.

Can you find out what was the interest?
Why is the escrow lower?
How much did he refinanced for?
Do you know what I need to bring so I can get all the paperwork done in one sitting?
Thanks

Johnnyhulk wrote:

Well I am retired with about that income and I just got a 30 year mortgage with Banco Popular. Can you please explain more about the tax advantage thank you .... Johnny

Money you take out of a 401K or IRA is taxed as regular income just like your paycheck. Lets say you have an 80k salary and take out 200k from the IRA or 401K, then you will be taxed in 1 single year as if you had a salary of 280K.Note that if under 59 1/2 of age they also charge you an additional 10% of any money you take out out of your IRA or 401K.

If instead you just get out 50K for down payment, then you would be taxed on 80K and 50K down for a total of 130K, and you pay Federal and State.

Once in the island for a yearStarting with January, you are living on 40 or 50K and no longer paying State tax, so only need to pay Federal on the 40 or 50K salary and on any money you get out of the 401K, If you spread the payments over 3 to five years, your income would be low (US Standard) so in general you pay less,

A big lump sum can push you into 28% or more Federal plus whatever your state charges,

So it is cheaper tax wise to get the money slow over a 5 year period while a permanent resident of PR. With a low income, you may end up paying 10-13% Federal taxes instead of 28% or 30+

3 to 5 years of interest will not kill you and you end up saving in taxes.

PS. Make sure that when you make lump sum payments they go toward the principal and not the interests, the mortgage company can tell you how to make the check so it goes toward the principal. Every time you make a lump sum you skip paying interest on that amount so more of your regular monthly payments go toward the principal automatically. You will be surprised how quickly your house become yours.

davidtx wrote:

Hi Rey

Look into Sun West Mortgage.  I believe they are a little easier to work with than the banks because they are focused on mortgages and they have offices in the mainland as well.  I worked with Bob Chamorro and he was very responsive.  His email is bob.chamorro@swmc.com and his number is (787) 308-4540 or (787) 522-0244.   I would try to get in touch with him to see if he can help.

David

I took the info down, I will contact them at the appropriate time, thanks for the info. It would be nice if we can arrange a loan from here that works in the island, island brokers and banks may charge a higher prime.