Everyone knows that we are currently in the process of buying a new house for us. It has been an extremely slow process, and that's why I have been talking about it so much. We are very, very excited to buy a new house, but we are also very nervous.
Adding a new mortgage that will be little higher seems scary. No, we are not afraid that we are pushing ourselves to debt limits, but we of course would rather have a home payoff date closer to now rather than later.
For our new mortgage:
1. We want our new monthly mortgage payment to not increase too, too much.
We didn't get the greatest interest rate when we bought our first home, and that is mainly because of what the interest rate environment was like when we bought 4 years ago. It was low, but not as low as today.
2. We need to look into property taxes for the place that we want to buy.
Property taxes can range pretty widely where we live. We live in a moderate tax city already. We've looked at a house that cost around 3 times more than what our current house is worth, yet the property taxes are a couple hundred dollars lower per year. We also looked at a house that was the same price as this other house, and the annual property taxes are THOUSANDS more per year. That's a difference between spending $150 per month on property taxes or spending $500 per month on property taxes This is a very big difference!
3. We also need to know more about how much our home insurance will change.
We live in a pretty cheap home now, and our yearly home insurance is around $700 per year. I'm wondering how much home insurance would cost for a more expensive home. I've read that the yearly average is around $500, which seems very, very low to me. So, I am not sure if that is true or not.
Are you looking to decrease or increase your monthly mortgage payment?
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