As a single mom who is also a teacher, I’ve always had a lot of faith in home ownership.
But as I’ve watched my kids grow, I’m beginning to question whether or not I should buy a bigger home.
If my kids are spending so much time playing outside and eating out at fast food restaurants, why should I buy a $1 million home?
While the answer to this question is a big, fat no, buying a bigger house doesn’t necessarily mean I’m better off financially.
I still have a lot to learn about the real cost of owning a home, but my wife and I are both working full time jobs and our combined income is still about $200,000 a year.
Plus, we still have enough savings to retire comfortably and live a very comfortable lifestyle.
So, what are the best ways to buy a home?
Here’s my list of the top 10 reasons why you might not be better off buying a larger home.
You’ll be spending a lot more money on rent.
We all know that the more you pay for rent, the more money you’ll have to spend on other necessities.
However, it’s also true that paying rent will only make up about half of your overall monthly expenses.
As we’ve discussed before, there are other expenses you can spend money on, such as health care, taxes, insurance, and a mortgage payment.
So what if your monthly rent payments increase by an extra $1,000 per month?
That’s a pretty hefty chunk of change, especially when you consider that most renters in our country will be earning at least $40,000 to $50,000 annually.
We’ll also be spending more time living in our new house than we did before, which will only add to our financial stress.
Your credit score may suffer.
Many people think that paying off a credit card is the most effective way to pay off a mortgage, but the reality is that it’s not.
You need to balance your debt and income to make sure your credit score remains high.
If you have credit card debt, then paying off that debt means that you’ll be paying a higher interest rate on your loans.
That can mean a higher monthly payment.
You can pay off the debt by working toward a better credit score, getting a job that will help you pay off your credit card, or getting a better mortgage.
If the latter two are the case, you may want to consider refinancing your mortgage or lowering your monthly payment for the purpose of making sure your debt stays in balance.
You may need to invest in a down payment.
As with many other areas, down payments are a big expense for many buyers.
Even though you’ll likely have to pay more in monthly mortgage payments than you would in a standard mortgage, it will take time and energy to make a downpayment.
Plus if you want to pay your mortgage on time, it can be a real hassle to put a down-payment on a property you already own.
The good news is that a down payments can be as low as $10,000, and some lenders will offer refinancing options that allow you to make payments of up to 80% of the property’s value.
The bottom line is that you need to think long and hard about whether or how much you want a down, even if you have a lower monthly payment than you do with a traditional mortgage.
Your home will become a lot harder to sell.
While buying a house can be fun and exciting, if you’re planning on selling your home, you’ll probably need to consider a few things before you make the decision.
First, if your home has significant repairs that need to be done, such for roofs, floors, and windows, then you may have to consider selling the property.
Second, you might have to buy insurance, as homeowners insurance is typically a better deal than renters insurance.
Third, if there are any outstanding security deposits, then a security deposit could be a better option than a down sale.
In the end, your goal is to sell the home and have a much better financial future.
You’re not guaranteed to live at home.
As you probably know, mortgages are a long-term investment that can be extremely expensive to make.
The fact that your home may become a liability when it’s sold also means that it could become a financial burden on you as well.
If your home is in foreclosure, for example, then that may mean you need additional help to pay for repairs.
Plus even if the home you sell becomes a liability, you could still lose your home and possibly be left with nothing.
For this reason, it makes sense to buy the home first and make sure that you get the best deal.
You could end up with more debt.
It’s true that a home is usually a good investment, but sometimes you’ll need to borrow money from someone else to pay down your mortgage.
For example, if a friend or relative is having a difficult time paying