Dial Herco

Archive for August, 2009

Everything is subject to change, as you’ve noticed. Your life changes and so does your dream, and with it your dream house. What you need and desire wifi be different tomorrow than it is today, and different again the day or the year or the decade after that.
The truth of the matter is that the dream house hardly exists anymore, if by dream house we mean the one most suitable house that you would want to own and live in your whole life long.
Even if you do have a clear and unchanging idea of what your dream house should be like, the chances are good these days that you can’t afford it, at least not the first time you buy a house. The trick is to incorporate as many of your priorities as you can afford in this house and then count on appreciation in home values over time to increase your equity and boost you up the housing ladder.
How does this work? Suppose our hypothetical buyers, a couple, start with a sum of $5,000 that they can pay down on a home. Suppose further that they qualify for a mortgage loan of S45,000. This combination of down payment and credit enables them to buy a $50,000 house. After living in this house for five rears, they still owe a balance of $42,000 to the lender, but the market value of the house has risen to $92,000. So if they sd] it for that amount and pay off their mortgage, they’ll have $50,000 to put down on the next house, which is ten times what they started with five years earlier. If their economic and financial circumstances have improved sufficiently in these five years to support a mortgage loan of $175,000, they can use the $50,000 as a 20 percent down payment and move up to a $225,000 home, or perhaps a $150,000 home with a mortgage of $100,000.