Here are some good things to think about when deciding if a home is financially viable for you!
- Should you buy before home prices climb higher?
- If you’re planning to stay in one spot for a decade or more, short-term fluctuations in the house’s underlying value shouldn’t make a difference. (The local market you are interested in is important to understand when making this decision as well)
- Do you have a 20% down payment?
- You might need to pay PMI if you don't have 20% down. PMI rates vary from lender to lender but generally cost 0.05% to 1% of the total loan amount
- Can you budget for recurring monthly expenses?
- Taxes, insurance, & HOA dues may change, so even with a fixed-rate mortgage, your payment could fluctuate
- Do you have savings for maintenance and repairs?
- A very broad rule of thumb, you should budget 1% of the home’s purchase price annually for repairs and maintenance.
- How long will you stay in your home?
- Buying and selling a home incurs thousands in closing costs
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