Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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NeelyNeely
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I also had a couple thoughts on this topic. Being in the building business I see far too many people that stretch themselves to the max to get the house of their dreams. A change order comes through on a house we are building for $200 because they picked slightly nicer tile and and they have a heart attack. And this is from someone buying a $500k house. This is because they have scraped together every cent they have in the world to buy this “trophy” and get to the 20% down. They don’t have another dime to their name. Don’t get me wrong, living in a nice house is a wonderful thing but buy something between what you “want” and what you “need.” Do not become house poor. Also, if you need to wait another year to save up a little extra cash then it’s worth it just to have the safety net.

Also, with regards to a 15 vs. 30 year mortgage. I tell people unless they are 100% comfortable making the 15 yr pmt, go for the 30 year. Yes, it’s a slightly higher rate but you can still pay at a 15 year clip if you can swing it but if times get tight you can go back to the 30 year payment for a while until your financial situation is more comfortable.

Last, I will echo DX’s comments about mortgage companies as I have fallen “victim” to the selling of mortgages. And yes, it’s a PITA. Wells Fargo has excellent servicing so if you can get a decent rate from them it’s a great way to go. I, unfortunately, have never gotten a good quote from them so have never been a customer. I also agree with him on buying down the rate. Unless you are 100% sure you aren’t going anywhere for awhile the return on that investment isn’t always the best.