I've read a lot of threads and I'm very intrigued by the AOR. I make a good salary, but I don't have much in terms of retirement so I have to play catch up at age 40. A big chunk of my income money is going to uncle sam in terms of taxes since I don't a mortgage write off. So I was thinking about purchasing a home this year. My credit score is around 780 for all three agencies. I'm planning to spend around 300K on new home. Am I going to be able to do an AOR after my home purchase. Or will I likely to have to wait a while. I don't want to risk doing an AOR before and get a bad mortgage rate. Does anyone have any feedback on this?

I did a small AOR (5 new cards, $65k pulled out, $80k limits) just 6 months after a home purchase and a mere week after refinancing the mortgage on that. I think my ficos were a little lower than yours, around 760. No app declines, good credit limits except for one (which was a fairly unknown issuer and apparently standard practice for them).

I agree, don't do an AOR before the mortgage. I check on a few FAKO scores and they suggest even my modest AOR dropped scores 5% or so.

waterdance said:I've read a lot of threads and I'm very intrigued by the AOR. I make a good salary, but I don't have much in terms of retirement so I have to play catch up at age 40. A big chunk of my income money is going to uncle sam in terms of taxes since I don't a mortgage write off. So I was thinking about purchasing a home this year. My credit score is around 780 for all three agencies. I'm planning to spend around 300K on new home. Am I going to be able to do an AOR after my home purchase. Or will I likely to have to wait a while. I don't want to risk doing an AOR before and get a bad mortgage rate. Does anyone have any feedback on this?

1. How are you going to catch up on retirement by going into debt on a house?

2. I love when people say that the mortgage interest is a huge writeoff. If I have an option between keeping my money - marginal rate or marginal rate, I would always choose the former. Why do people rush to the latter? A house is rarly cheaper than an apartment or rental when you factor in all of the costs. The only way you will "save money" is if rent <= (Yearly payment + taxes + increased insurance and utilities). Even then you are only saving the marginal rate on interest and taxes. You benefit of owning is appreciation of property (check the last year housing prices) and forced savings via payoff of principle (until you get a heloc and tap that).

My advise is learn how to save, then buy a house.

* Do an AOR only after your purchase a home with mortgage, never before.
* AOR money isn't free; it must be repaid. An AOR in and of itself will not help with your retirement.
* One's personal residence is not an investment -- it's a liability that will cost you money throughout your life.

Do you guys realize that the OP did not bother to reply to his own thread in a couple of days?
New user with 2 posts... He probably does not even remember his password by now...

Anyway: I would buy a house right now with fixed interest rates for 30 years, in about 5 years due to high inflation you would pay the the same for the monthly morgage as filling your car tank.

How is spending $1.00 in interest in order to get 25-35 cents back in taxes going to help you save money?

If you want to save for retirement and not just talk about it, get a modest affordable apartment and max out your 401(k), 403(b), TSP, etc plus an IRA.

$15.5K +$5K plus more when you turn 50 should catch you up quicker for retirment than buying a house.

You misunderstood my question. My question is basically how long after my mortgage would I be able to do an AOR, irregardless of retirement. I already have maxed out of 401K and my Roth IRA. But there are other deductions and tax credit that I cannot take advange of because my gross income is too high and i do not have enough itemized deductions. Home ownership will allow me to tax the mortgrage write off and additional itemized deductions that I wasn't able to do before because of the adjustment gross. In addition, it takes me down another tax bracket. I'll probably get two roommates to get extra money. I also run some business at home, which forces me to pay for storage costs which I can could transfer to a garage and apply that money to the home instead of storage. I am not trying to do the AOR to fund my retirement. I'm just trying to take advantage of some extra money with my credit. They are entirely different issues. I'm late putting in money into my retirement. I stated only 5 years ago, but it is not tied to the AOR. I just wanted to know if I would be able to do one shorty after my home closes or how long after. I hope this makes more sense to you. This is just part of the financial picture. I wasn't expecting a commentary but a quick answer. But I appreciate everyone's help.