How does your mortgage decision relate to amount?
Jeff Thomas: The amount of home that you can afford is different in the amount of home that you may want and there’s two key questions that you want to ask yourself and one would be, “Do I need a lower payment or do I want a lower payment?” And that would lead you to whether you’re looking at something as in necessity or you’re looking at something as an opportunity.
A necessity would be that you have to have a payment because you can’t afford a payment higher than that and you can’t get a proof or a loan higher than that or you have to put “X” number of dollars down on a house to afford the house that you want.
Opportunity would mean that you’re taking either reduced payment so you can keep money in the bank or you’re not putting as much money down so you can either:
A. Invest it
B. Pay off consumer debt.
So the amount really come in the play with what your time line to be in the house with is and how you feel about investing in your house because that’s what you’re doing every month. When you make a payment you are investing in the house when you put money down as a down payment, you’re investing in your house.
So amount really means how much money do you want to invest in your house and what do you want to do with that money.
Transcription by:
Scribe4you Transcription Services