2006-10-31 09:49:42 · 8 answers · asked by serialmom12 5 in Business & Finance ➔ Renting & Real Estate
Even if the value of your house remains constant over time - it appears you are right at the decision point. You figure the amount of mortgage interest and property taxes (assuming both are factored into your 1600 payment), and subtract about 30% of those off your 1600, projecting your tax refund - I'll bet you get to about 1000. You'll get a free house after 30 years instead of renting.
2006-10-31 09:54:45 · answer #1 · answered by Action 4 · 0⤊ 1⤋
Can you afford the downpayment without borrowing 10-20 % of the sales price? Is your job stable? Do you have any other debt like college loans, car payment, or credit card debt? Do you have a good FICO score?
Other considerations are the taxes, maintenance, utility costs for the house? You will also have closing costs to pay when you sign the final papers.
Work with your realtor and a real estate banker to see what you can afford. If you can make the monthly payments, go for it. Don't over extend yourself.
Make sure you pay for a private inspection of the house before you sign the final papers. You don't need any surprises like a leaky roof, bats in the attic or mold infested walls.
Good luck.
2006-10-31 18:18:07 · answer #2 · answered by ne11 5 · 0⤊ 1⤋
Well you don't say where you are wanting to buy?
But from long experience....it will not stay at 1,600 a month!!
You may have interest-rates rise...and if you get four like we have here in Australia...then! you no longer will be on a winner!
So if you say could pay more than 1,600 a month(because of a rise) like even up to 2,000 a month!! go for it.But remember
owning a home, has hidden expenses...Like you may have to also pay land tax each yr...Water, and also for city services, like when they come to empty your garbage etc.,one a yr or how ever many a yr....Then you have to pay for repairs to the home.
You have to have home insurance, for if the home burns down?...Also contents maybe, for yourself.
You will also need insurance for if someone has a bad fall..on your property!....LOOK into All costs....before you do.
But! don't worrie, as you also may be able to buy into the idea of a GOOD trailer park!!! Most of the time, the added expenses, are covered by a once a week payment?
Look at everything first! spend a great deal of time...and do your homework.
But! paying out dead money to a landlord....I'm hearing you!
2006-10-31 17:59:58 · answer #3 · answered by Anonymous · 0⤊ 1⤋
More importantly, you will get some of that money back in the end. It is like putting money into a savings account AND paying for housing at the same time.
If you can afford it, along with the down pmt, closing costs, and unforeseeable repairs, then buy the house.
2006-10-31 18:02:53 · answer #4 · answered by Phoenix, Wise Guru 7 · 0⤊ 1⤋
The interest portion is the write off, but since I don't know your income and tax bracket, no way of knowing the potential benefits. Also, is the house worth that? Are you prepared to maintain it?
2006-10-31 17:54:26 · answer #5 · answered by kingstubborn 6 · 0⤊ 1⤋
Not only a tax write off.....but a investment.
2006-10-31 17:51:34 · answer #6 · answered by Diamond in the Rough 6 · 0⤊ 1⤋
if you can afford $1600 a month, yes
2006-10-31 17:52:35 · answer #7 · answered by Celt 3 · 0⤊ 1⤋
yes, but a house is an investment/asset only if you own in out right. until then, it is a liability. get a fixed rate not an apr.
2006-11-01 02:56:45 · answer #8 · answered by MIABELLA_C 2 · 1⤊ 2⤋