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Mortgage Note

November 11th, 2025 at 03:30 pm

My existing mortgage note is due 11/28/25.  Hard to believe it has been 2 years already since I bought this little house, but it has.

I spoke with the lender on the phone and I learned that they are unwilling to write a new 2 year note, but will do a new 1 year note. There will not be a third note of any length.  They want the funds for another investment opportunity. I was afraid of something like this. 

This coming August, I will turn 59.5.  I will pull the remaining mortgage balance from my small Roth IRA and just be done with it. Between now and then, I will continue to save as much as I can in order to minimize that Roth withdrawal. At that time, the mortgage balance will be 20k-ish.

So it's not quite how I wanted this to go, but nonetheless it's how it's going.

 

Posted in Uncategorized | 10 Comments »

10 Responses to “Mortgage Note”

  1. Lots of ideas Says:
    November 11th, 2025 at 08:02 pm 1762891336
    1762891336

    Is pulling from your Roth the only option?
    Could you tap into a HELOC to pay off the mortgage note?
    Could you get a personal loan?

  2. mumof2 Says:
    November 11th, 2025 at 11:41 pm 1762904505
    1762904505

    Never heard of that we dont have that here...but I guess they have given you notice so have some time to figure it out

  3. Petunia 100 Says:
    November 12th, 2025 at 02:03 am 1762913035
    1762913035

    Lots - I have looked into a HELOC. One issue I ran into is the lender wants a minimum home value of 100k (my home is worth 80k). Other lenders wanted to do a first mortgage which would cost 5k+ in fees and would require me to borrow more money. I did find one lender who would do a HELOC but the fees were 2k+ and the interest rate was high. So none of that was appealing. I would do a personal loan if I can find one with a good rate. And who knows, maybe rates will be lower next year. That possibly could work out.

    Mumof2 - I don't have a regular mortgage from a corporate lender. I did not qualify, but I was able to borrow from a private investor. They lent me their own personal money. So the terms are whatever we agree to.

  4. Tabs Says:
    November 13th, 2025 at 05:51 am 1763013064
    1763013064

    A separate question, but have you considered what you will do with your Traditional IRA needing to go into RMD in say 10 years from now?

  5. Petunia 100 Says:
    November 13th, 2025 at 11:50 am 1763034638
    1763034638

    Tabs - I will be drawing from it before then, relying on it for about half of my income. If the RMD is more than I want to take, I'll save the excess in a taxable account.

    I'm actually going to start drawing on it next year after I turn 59.5. I'm planning to withdraw $889 per month (about a 2% withdrawal rate), have 10% withheld for federal taxes, then contribute the $800 net to my Roth. I will keep this up as long as I am working.

  6. LivingAlmostLarge Says:
    November 13th, 2025 at 07:30 pm 1763062221
    1763062221

    How long do you want to work? I read the July note and I didn't respond but you make $42k? What do you need to live? I think it's hard to make a plan without knowing your budget. That might help us make better suggestions.

    I'm going to throw out 0% CC as a strategy. You could keep paying the 3% BT transfer fee and then rolling the balance down. It really depends on your budget. That would be first potential thought.

    What is your monthly budget? What is the interest rates on the Carmax/terminix? I am not sure i would pull from the roth.

    You buy your own insurance, what is the cost? I'm also not sure on claiming SS at 62.

    Something I tell people is don't react to the situation sit and think and plan out the next 1, 2, 5, 10 years. Look long term and don't panic or react.

    How much is your pension? When does it start? I think i saw $500

  7. Petunia 100 Says:
    November 14th, 2025 at 12:57 pm 1763125031
    1763125031

    Hi LAL - I did write that I am earning 42k, but it's actually a bit higher at 46k. I am able to live comfortably on that while servicing all 3 debts. There isn't a whole lot of excess to work on my financial goals, but there is some.

    The CarMax loan is at 4.95% and Terminix is at 8%.

    I don't really want to pull from the Roth, but will do it if necessary. I'm not sure I have the ability to borrow 20k on a 0% balance transfer on my income. It is something to investigate though.

    Next year I will be paying $5 per month for my insurance, a gold plan. I still can't get over that. I paid $110 this year for my silver plan.

    My pension will kick in at age 62, the estimate is $547.

  8. Petunia 100 Says:
    November 14th, 2025 at 02:45 pm 1763131528
    1763131528

    Oh, and I do the Budget By Paycheck method. I get paid, pay my bills, save for future expenses, then use the excess towards my financial goals. Today was payday and I had $192.31 excess. I transferred it to my mortgage payoff fund. I am not allowed to pay extra on the mortgage, but will have an opportunity to reduce the balance when the new note is written. I plan to pay it down to 21k from $23,057.

    I am currently not saving any new money for retirement.

    I am bringing home $3100 per month if you average in the two 3-paycheck months.

  9. LivingAlmostLarge Says:
    November 15th, 2025 at 09:57 pm 1763243822
    1763243822

    But you got a raise to $50k? How will the $889 affect your taxes? You'll be increasing your taxable income to $60k? It might make sense to pull it all from your taxable instead of Roth. It's hard to say. Because i still think the 0% balance transfer could help in this particular circumstances. You could pull some from the IRA. When

  10. Petunia 100 Says:
    November 16th, 2025 at 02:23 pm 1763303006
    1763303006

    My estimated income for next year is 46k wages + 4k IRA withdrawal ($889 x 4 months, rounded up)= 50k.

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