I recall our experience back in the 1970s on buying a home. Me and my wife could barely afford the home we were buying. The real estate agent advised us how we could obtain a second mortgage in addition to the first mortgage, showing us how much the payments would be. Luckily, I was suspicious and read the fine print on the second mortgage. Initial monthly payments were low, and the remaining principal was due in full after five years.
I whipped out a calculator, figured out how much the remaining principal would be, and recalculated what we would need to be paying on monthly payments in addition to what the minimum stated payments were. My wife and I scrimped and were scrupulous about paying more monthly than what was needed to not have a balloon payment to worry about after five years. Real estate agents and banks were not offering information, we figured it out for ourselves otherwise we would have been in trouble. We've always had the silly notion of not carrying debt if we could prevent it. Now retired with no debt whatsoever.
I bought my first in late 1993, it felt like it was time and I thought interest rates would never be that low again, lol, 7.25%. “Sweat equity” down payment, $500.00 out of pocket with preferred lender which was Wachovia Bank & Trust. It was a novel program at the time that has since gotten a bad rep due to people not having enough skin in the game, too prone to walking away.
I’m in process of selling now, didn’t appreciate much in nearly 22 years, maybe $50,000 all said but it’s nearly paid off, I got smart and refi’ed down to 15 year some time ago. Somewhat disappointing on the appreciation, but given the 2008 crash it’s certainly better than being upside down and having to pay to get out from under or short sale. Better than renting too, I couldn’t have rented a decent 1,600 sq ft 3/2 ranch on over an acre for what I paid.
Any future purchases will have the profit built in, fixer upper or distressed, with a hefty down payment and no more than a 15 year note, hopefully 10. Like you, I have no desire to carry debt into retirement. Not even certain retirement as it’s been known will even be possible, but diminished income from work will be in the cards eventually. Got to plan for that.