My advice - Figure out exactly beforehand what the average monthly bills are. Figure out what the yearly property taxes/school taxes are. Figure out what your monthly morgage payment will be. Add that all up. Make sure you can pay it without too much effort. I think alot of people make the mistake of just focusing too much on the monthly morgage payment.
From what I gathered, a man had been having bad heart troubles and needed a transplant immediately, but the board considered he was too old to be considered a good recipient, so they decided to go at it at a different angle and find a donor heart that was considered to be ineligible to be a good donor heart and use that one. Hilarity ensued as they were trying to find out exactly why the heart was not responding to the medical treatments in order to make it viable. Crazy insults and one-liners were the flavor of the evening as they finally figured out that they saved the man's life, only to give him gonorrhea. I gave it three out of five stars.
Nope, Austin/Round Rock. Home prices are ridiculously inflated around here (~10-20% more than Houston). I'd rather not say how much I paid, since I know folks on this board in "real life", but rest assured it's MUCH more that the same house would cost in Houston. Location, location, location...
I don't wholly disagree with this, but for a lot of the country right now, what investment vehicle is more beat down than home prices? But they may drop another 20%, and, stock prices may drop another 20% if the nation goes into a real recession. Then where will TJ be? His interest only loan will come due, his house won't be worth the loan value and he wouldn't be able to cash in his depressed securities to cover the difference, especially if he is buying on margin. Bankruptcy is an outcome I'd prefer to keep out of my personal range of risk. I can't say where the nation's economy will be in 6 months but I certainly would be allowing for the possibility of a full blown recession. They are a natural part of our economic cycle. Many financial experts are expecting one (but you can't really call it a recession till you look at it in the rear view mirror). In free markets things boom until they bust...tulips, silver, oil prices in the 80's, dotcom stocks, beanie babies and housing etc. etc. So yes, I agree, paying extra to increase your home equity isn't all that nescessary. But securing a home that you can afford even in tough times and that has a chance to appreciate, is one of the best investments you can make because you receive the value of being able to live in it. You have to live somewhere.
To add to what Dubious said....there's a cozy comfy feeling that comes with paying down your mortgage -- even if -- in theory -- you could make more on the market. Losing that cash call every month gives you all sorts of flexibility should you change careers, or otherwise risk your income flow. Besides -- if you might otherwise put some of your money in bonds -- you'd be hard pressed to get a much better rate then your mortgage -- especially when you consider that there is absolutely no risk (since you're extinguishing your own liability). Advise to first time buyer -- just make sure you're comfortable with the payments and other costs. Banks may be willing to lend you more then you might reasonably want. MasterB -- Very nice home.
