Build the Home You Can Afford

admin — Thu, 03 Jun 2010 18:52:45 +0000

Before you get started on building your new home, take a few minutes to crunch the numbers to see exactly what you can afford. It may seem like a hassle now, but you’ll enjoy that lovely new house so much more without the worry of a defaulted loan or missed housing payments. There’s no denying the US housing market has seen better days, but with sound financial decisions you can avoid becoming another victim of the credit crunch. And, even better, Pittsburgh was ranked by Forbes as this year’s number one housing market in the country.One of the many financial decisions you’ll have to make when buying a home is what type of mortgage you want. You can use online tools to figure out whether you want a 15 or 30 year mortgage. With a fifteen year mortgage you’ll pay higher bills, but by paying off your mortgage in half the time, you will spend much less money on interest. You will also want to decide whether you want a fixed rate mortgage or an adjustable mortgage. With a fixed-rate you will most likely start out with a higher interest rate than with an adjustable rate, but it is predictable and will remain the same over the life of the loan, allowing for an easier budgeting process. Conversely, an adjustable-rate starts out lower but increases over time at set intervals that vary based on the loan. Adjustable-rate mortgages can often be more complicated than fixed-rate mortgages, so if this is the type you choose be sure to pay extra attention to the fine print. Once you determine this, mortgage calculators can be found online and are useful in determining your price range for buying or building a house.Finances are, without question, the least glamorous side of buying a new home. Nevertheless, they are one of the most important. To ensure that you can enjoy your new home stress-free for as long as you want, be sure to find the best payment plan for you and your family.

Pittsburgh Custom Homes » Home Financing

Build the Home You Can Afford