Should i buy this house?

Question

Ok i need to know your opinion on whether i should buy this house or not. it is $590,000. i make $220,000 a year. mortgage payments add up to $35,000 a year. it has 3 acres, 4 br, 3 ba. i'm offering $530,000 for it. the driveway isn't paved. and won't be if i offer that much. my house right now should sell for $360,000. i really want it because i have a dirt bike and so does my son. this way we won't have to drive 1 hour whenever we want to ride. we're going to have to give up dining out for a while and a few other things. should i buy it?

Answer 1

If the house is worth 530 or more than you should buy it. You make more than enough to purchase it. You might want to consider renting your other property out for tax purposes.

Regards

Answer 2

The mortgage payment should be less as you will have $360,000 in proceeds from the sale of the house. I take it though that you have a stiff mortgage on that property. A $170,000 mortgage with a 6% interest rate for 15 years would generally cost $1,513 per month

Originally, I was like go and buy it, but I am beginning to have my doubts if you can actually afford it. The supposed lack of equity in your first mortgage has me worried.

However, if you decide to buy this house, you are to get a long-term disability insurance policy on your own that covers 60% of your salary. If you cannot afford that, you truly cannot afford the home. Sorry!

Answer 3

as long as it isn't a arm or an interest only mortgage go for it. However remember this is not a good time to try to sell your other house unless you have a buyer already.

Answer 4

I dont think you should be asking other people about the most most major purchase in your life

Answer 5

Yes, go for it.