- GoldenHas donated $ to the upkeep of GPL
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.
It amazes me even after what happened when the housing market blew up that this still happens. I also see a lot of people still trying to use their homes as ATMs again too. Using your primary residence as an investment tool is a really bad idea