Tuesday, September 30, 2008

Has the mortgage crisis got you down?

It's probably a good time to buy with prices slowly decreasing, but the lenders are tight. Camille and I recently took out two separate mortgages and the scrutiny was incredible. They required proof for everything. If it had been that way years ago perhaps this wouldn't have been such a problem. But what about today, what about your dream home? If you are in it for the long haul, then buy the house you love. If you think it's a great investment, factor in closing costs, interest, taxes, repairs and you will see that owning a home isn't as profitable as people believe. Few rarely do all the math and look at the buying price vs. the selling price. I like a simple formula for rental property: if I can make a few hundred dollars a month over ALL expenses and keep about 50% of my mortgage payment as equity, then it's a good deal.