How Much Home Can I Afford?
As any experienced buyer or real estate agent will tell you, buying a home is a multifaceted process. You're choosing somewhere to live, but you're also making what will probably be your biggest purchase in your entire life. Because there are so many financial considerations, it's important to approach the process carefully and systematically. You want to be sure that you don't miss anything! A Few General Observations Before we delve into the specifics of home financing, here are a few general observations. You should only buy a house if you plan on living there for at least five years. If you live somewhere for less than five years, renting may be a cheaper option. If you live somewhere for five years or more, though, buying is often more cost-effective. Bigger down payments mean a smaller loan amount and (consequently) smaller monthly payments. Your mortgage payment will only be a fraction of your monthly expenses. As the owner, you will also be requ...