{"id":5832,"date":"2022-05-28T08:12:00","date_gmt":"2022-05-28T14:12:00","guid":{"rendered":"https:\/\/dougmovesyou.com\/?p=5832"},"modified":"2022-05-25T18:21:17","modified_gmt":"2022-05-26T00:21:17","slug":"live-in-the-payment-not-the-price","status":"publish","type":"post","link":"https:\/\/dougmovesyou.com\/live-in-the-payment-not-the-price\/","title":{"rendered":"Live in the Payment, Not the Price"},"content":{"rendered":"\n

Last week, we talked about the ever-important topic of possibly waiting to buy a house and why that decision will end up costing you more in the long run.\u00a0 Some potential home buyers are currently waiting to see if the market \u201ccools down\u201d, or in other words, they are waiting to see if the average price of housing will go down over time.\u00a0 After all, the average price of a single family home in Denver right now is about $693,000.\u00a0 Yet waiting on the market will only add higher costs since the average year over year appreciation value of a single family home has been about 13% since May of 2021, as detailed<\/a>.\u00a0 Deciding to wait to buy a home is indeed an expensive decision, especially considering that current home values are based on supply and demand and not market inflation.\u00a0 While some home buyers may experience sticker shock and even cold feet, I have a few tips on how to look at the current home costs by living in the payment and not the price.\u00a0<\/p>\n\n\n\n

What does It mean to live in the payment?<\/h5>\n\n\n\n


As buyers get caught up on the initial asking price, I encourage buyers to live in the payment, not the price.\u00a0 This means that you should focus on the monthly payment you\u2019ll be responsible for in day to day life, as opposed to the long-term costs.\u00a0 Living in the payment means that you and your lender have run the complete monthly numbers and you are happy with this.\u00a0 After all, having a mortgage ensures you can pay off the home loan long-term over years by breaking it down to smaller, manageable payments.\u00a0 When you decide how much you can comfortably afford, you may find that price increases in the market don\u2019t actually impact your monthly payment very much.\u00a0 If you\u2019re looking at a community with an homeowners association (HOA), a special taxing district, or a golf course home that comes with extra fees, make sure you are also factoring those numbers into your budget as well.<\/p>\n\n\n\n

What goes into a monthly housing payment?<\/h5>\n\n\n\n

Many factors influence monthly payment.  If you\u2019ve ever taken a long look at your mortgage statement, you\u2019ll find that a home mortgage payment consists of principal and interest (P&I) payment, and typically an escrow for property taxes and homeowners insurance. HOA dues and other fees are separate and also factor into your total monthly housing cost.  <\/p>\n\n\n\n

If you\u2019ve put less down in a purchase, then you may also have private mortgage insurance (PMI) based on the terms of your loan.\u00a0 Typically, the less you put down, the higher your PMI will be which will add cost to your housing payment.\u00a0 And of course, if the price is higher, the taxes will become higher because they are based on a percentage of the home\u2019s assessed value.\u00a0 The longer a buyer waits, it is inevitable that the property cost will go up and then all of these costs will go up.\u00a0<\/p>\n\n\n\n

Your monthly payment<\/h5>\n\n\n\n

Living in the payment also means that you can comfortably pay your mortgage and maybe even add on additional principal by doing a refinance over time.\u00a0 Of course, interest rates are an important factor so if you\u2019re looking to buy and the current interest rate is something agreeable to you and your budget, I suggest not waiting.\u00a0 Your mortgage payment will vary based on your terms as well, while most buyers opt for a 30-year fixed loan timeframe, other buyers opt for a 15-year fixed timeframe. There is growing interest in using an adjustable rate mortgage (ARM), typically in a 5- or 7-year fixed timeframe before becoming adjustable. It is really a personal preference and financial comfort.\u00a0 After all, you want to make sure you have enough money at the end of the month to enjoy your favorite hobbies like golf or traveling.\u00a0\u00a0<\/p>\n\n\n\n


Are you ready to make a move right now? Are you in the market to buy or sell your home?\u00a0 Call and text me at (720) 323-4176 or email me at DougMovesYou@Gmail.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Living in the payment also means that you can comfortably pay your mortgage and maybe even add on additional principal by doing a refinance over time. <\/p>\n","protected":false},"author":2,"featured_media":5833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,2],"tags":[43,1869,1936,15],"acf":[],"_links":{"self":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts\/5832"}],"collection":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/comments?post=5832"}],"version-history":[{"count":0,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/posts\/5832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/media\/5833"}],"wp:attachment":[{"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/media?parent=5832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/categories?post=5832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dougmovesyou.com\/wp-json\/wp\/v2\/tags?post=5832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}