People purchase large homes for a variety of reasons such as “outgrowing” a smaller home, a better financial situation, a desired social status, etc. But if you are searching for your dream house, keep in mind that bigger is not always better, and there is such a thing as “owning too much home.”
Ask yourself the following questions before jumping into a major purchase that you may not actually be able to afford.
What will your monthly mortgage payment be? – Experts say that a maximum of 25% of your monthly income should be devoted to your mortgage payment. If you are looking at paying much more than that, odds are that the house you are looking at is out of your budget. Your mortgage payment is a big commitment, but keep in mind that it won’t be your only financial commitment.
Can you afford the property taxes that come along with the house? – If you think the property taxes attached to your potential new house are currently too high, keep in mind that they are likely to increase either through increased tax rates or increased property values.
Will you be able to afford the up-keep that comes with the house? – Regular monthly mortgage payments and taxes aren’t the only costs that come with homeownership. If you want your new house to maintain or increase in its property value, you will also have regular up-keep costs. Make sure you don’t blow your budget on a house, and then neglect your investment.
All blog information is of the opinion of the Loan Officer and is not supported by Fairway Independent Mortgage Corporation
