Treat Your Mortgage Like Any Other Debt
Most financially savvy people are wary of going over their heads when it comes to credit card debt. But buying a home? We are not always with the same caution when it comes to housing prices.
The Motley Fool reminds us that a mortgage is like any other debt. In fact, I would say that this is more critical than other debts, as you can lose your home and seriously ruin your loan if you cannot pay your mortgage. Anyway, before you think about buying a home as big as you can afford, keep in mind the debts you are incurring:
If you were allowed to get a $ 20,000 credit card, does that mean you should finish and spend $ 20,000? Of course not. Just because you have the ability to buy something doesn’t mean it’s a good idea.
Unfortunately, too many people don’t apply the same logic when buying a home, opting instead to buy as much of a home as possible. If you want a large home, or if there is a legitimate reason to buy the top-price home, go for it. My goal, however, is to get you thinking about the big picture: how much this big house will actually cost and should you lower your housing budget so that some of your income can be better spent elsewhere.
Owning a home comes with many costs that you might not expect , so you’ll want to leave room in your budget for both the mortgage and those costs. Read the article below to learn about other things to consider when buying a home.
How Much Home Can You Really Afford? | Motley fool