I think the hardest part of owning a home is that we can't afford all the "extras." It took us a year to buy couches and now 2 years to finally get a coffee table and end tables. I still don't have a bedroom set or a decent kitchen table. So I think it's hard that we have this nice house and no pictures on the walls, no window treatments, nothing. But it is still better than living in an apartment in so many ways.
A few tips about mortgages: Unless you can put 20% down, try to get a 1st and 2nd mortgage. Usually the 1st will be a 30 year fixed lower rate for 80% of the purchase price. The 2nd is a 15 year higher rate for the difference between your down payment and the 80%. If you mortgage say, 95% of the total, you'll pay something called PMI which is a waste of money. If you do 2 mortgages you don't pay this and the interest is tax deductible. Ask for an 80/10 or an 80/15. Don't get an ARM unless you think you will outgrow the property or move within that period. I'd say if you are getting a 3+ bedroom and you aren't SURE that you will move soon, get a fixed rate. Otherwise your 6% loan could go up to 7%... then 8%....
Don't pay points. And don't let them charge you a lot of fees. Appraisal and title charges are OK. Broker's fees, origination fees, etc. are just profit going in the mortgage lender's pocket. Keep in mind they are already making money on your loan. And beware that closing costs are expensive!
Another thing is the escrow. Our taxes every month are like $400 on top of the mortgage payment. Make SURE you can afford this and either roll it into your mortgage payment (as escrow) or be diligent in saving it every month. |