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Is there a more efficient way to fund the purchase, such as taking out a mortgage and then paying it back from my IRA over a few years?

This is a fabulous time to be getting a conventional 30 year FRM. You are still working and have a W-2, which makes it easier. So as long as you meet the ratios for income to debt you should be good to go.

I would be hesitant to pay it off from your IRA. The interest rate is so low that you are likely to do better with investments over the long term than paying off the low rate mortgage. But I recognize debt as a tool to use, yes even in retirement, and am not uncomfortable with having enough assets on hand to pay it off while keeping debt.

We have two mortgages, one that we got last year after being retired for two years. I view them as inflation hedges as the fixed rate will not move while inflation is bound to increase after all the influx of money from Federal pandemic relief. For some, being debt free is an emotional need and that is OK too, but I would rather have lots of money on hand to pay down debt than zero debt and little money.

What works for me may not work for you. I don't know your specifics.

IP
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