Why You Should Just Buy The Nicer Home.


When buying a home a lot of factors are put in such as location and size, but the most important factor is whether or not you can afford it. We’re told “be cautious”, “be smart”, even to “be practical”, but what if the smartest, the most practical option, is the one that puts you in the home you actually want, not the one you’re going to settle for because it’s a safer gamble financially?

Now I’m not saying go buy a mansion that is three times what you can afford, let’s be real here, you won’t get past your bank,  at least not without a down payment that looks like Bill Gates’ electric bill. However, what I am saying is upping your budget a bit for maybe a larger floorplan, or a better location, you know, the kind of comforts that appeal to your classier tastes without totally destroying your budget and leaving you in financial ruin.

But that’s all talk right? It’s hard to make an argument without numbers, so look at it this way. Principal and Interest (P&I) on a 200k house at four percent is about $955 dollars a month. If you were to raise the budget to say 250k the P&I goes up to only $1,193. Now that 50k won’t bring you from a starter home to a smoking hot pad in Beverly Hills, but in a first time buyer market it greatly improves space and location for a measly $238 a month.

The concept works similarly on houses that are twice the value. P&I on a 400k house (still at 4%) is $1906 a month. Opt to buy a 500k house instead, you will be paying $2387 per month. The increase of $477 can make a world of difference in the house you buy and how you feel about it.

So don’t go house poor! If you can’t afford that extra $238 or $477 maybe it’s time to cut back a little. Don’t eat out so much, or see a matinee instead of a night showing. Maybe even trade in your expensive car for the model below it! These are small prices to pay for heavy savings. Little sacrifices that can make where you live something you love, instead of what you settled for.

To find out what your options are, call National One Mortgage, and we’ll help you get where you want to go.