Don't let the banks or govt tell you how much of a house you can afford. Do the math yourself. Ask home owners what they pay each month for utilities. Calculate in new stuff you'll have to buy (furniture, a lawn mower, etc). Double check property taxes, and make sure you have enough left over at the end of the month for your usual expenses. A money management application such as Quicken is a great investment and will help you track your income vs. spending.
Also watch out for ARM mortgages. Don't bank on the interest rates staying the same or going down. If you can't afford the payment when the rate swings 2%, you can't afford the home. That's why a fixed-rate mortage, even if the rate is higher is a much safer solution in such an unstable economy.
Also watch out for ARM mortgages. Don't bank on the interest rates staying the same or going down. If you can't afford the payment when the rate swings 2%, you can't afford the home. That's why a fixed-rate mortage, even if the rate is higher is a much safer solution in such an unstable economy.
all that matters ! Sucks for anybody who has not seen the movie who just read the above statement
