On one show I was watching tonight, someone that called in had a 50 year mortgage so he could afford the house he had bought. He made $100,000 a year and had purchased a $600,000. When you go to apply for a mortgage you have to have an idea of what you can afford. Because many times like this the mortgage broker convinces you can afford more than you probably can.
If you can comfortably afford the mortgage and have savings for emergencies in case something comes up, owning a home is a great thing. But don't buy a house just to own a house. If you can't afford it, it will be a mistake. Continue renting and saving until you can afford it. When you are getting ready to purchase a home you have to realize you will have additional expenses and upkeep expenses that you didn't have as a renter.
The past few years when interest rates were low, some people refinanced their homes and took the cash to pay off credit cards or spend it on other things. Now that the value of their homes may have dropped they are in trouble. Some areas like CA, AZ and FL where the values increased and decreased more than other areas are in more trouble than others.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment