Purchasing a new home can be very stressful, not only do you have all that paperwork to fill out and sign, you also have to make sure you will be able to pay back the loan you may need to make the purchase possible. My husband and I are currently looking into purchasing a new home, and we are weighing out the options we may have. Do we go with a loan, or save the money and hope to purchase out right?
Purchasing a new home is a big step, and many things are to be considered when deciding on a home loan, the main thing is interest. You don’t want to get a loan that the interest is so insane that the home you are wanting to purchase will 2/3 more then what you are purchasing it for. One thing I am looking for is the ability to refinance.
Home loan refinancing can help you lock in a lower interest rate, and if I can save some money I am all for refinancing.
My grandparents had to refinanced their home recently to pay off some debt, when home owners find themselves in a jam they often take out mortgages on their home, thinking they will have no problem paying it back, they often find themselves having several loans, and refinancing is their only way to eliminate some of their bills, and make them into one.
I have heard people state if you cannot afford a place, maybe you should find something you can afford. The thing is when new home owners purchase a home, they often can afford it, then money situations change, and they are left to figure out what to do.
For example, my sister and her husband, both working making great money purchase their first home together. This was 10 years ago, now they are divorced, and my sister kept the house, however they still owe over 70k on the home, and now she is working on one income. Can she afford to keep this home by herself? No!
She has a few options, she can let the house go, which would be silly they have raised their children in this home, and have paid on it for 10 years, OR she can check into refinancing it and hopefully getting her mortgage payment reduced so she can financially afford it on her own.
Have you ever been in a situation where you had to look into these options? If so what route did you take?