In my last post I had a video where I talked about my experience about getting ready to apply for a loan (you can read it by clicking here).
Here’s one more thing you have to consider:
If you already own a house and you are buying a more expensive house YOUR PAYMENT MAY GO UP!
Here’s the backstory: my wife wants a new house so she started looking around at some new developments. Which meant I had to go get the loan work started to make sure we can buy what she’s looking at. Long story short, we can.
So when I brought back the monthly payment estimate she nearly balked.
“But it’s double what we are paying now! We can’t afford that!”
So I’m thinking to myself, “You want to buy a house that’s more expensive and you don’t think the payment is going to go up?”
Buyers always balk at payment estimates. I think it’s funny that this happens to Realtor families too.
Don’t tell my wife I wrote this.
One last thing, even though the principal and interest will remain the same on a fixed-rate mortgage for the life of a loan, taxes and insurance escrows (which are typically added to the monthly payments) will go up over the life of the loan. Which means the total monthly payment will go up from time to time over the life of the loan.
Image kind courtesy of stevendepolo. Click here to see his other work.