My husband and I are considering a move in the near future. Interest rates are low and prices on homes in our area are some of the best we’ve seen. It’s a good time for us to upgrade to a bigger house with some property. Before we make the big leap we’ll have to compare home loans and see what our options are. We are looking at a thirty year fixed with an 80/20 split to avoid a down payment and carrying mortgage insurance. Not everyone would consider this because of the higher interest rate on the 20% loan but there are many options available to meet a variety of needs. In our case we believe it’s a decent option because the interest we pay is tax deductible while with the PMI, it isn’t.
In the meantime I’ll be dreaming of a kitchen with counter space, bedrooms for each of the kids, and a large outdoor play area. We consider ourselves very lucky because we’ve avoided the disaster that many people are currently facing. We bought our first home before the inflated prices. We did refinance it a few years ago to lower our interest rate a bit and plan on keeping the home and renting it out when we buy another. While we haven’t gained equity, we haven’t lost much either.
Buying a house is something not to be taken lightly. We are weighing our options, analyzing our budget and taking many factors into consideration before making the plunge. At the same time, we are trying to take advantage of the current market because we believe it’s in our best interest to invest now. I love house shopping but despise actually moving. I know it’ll be worth it in the end though.
This is a guest post by Jane Anderton.