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zippy
Veteran Member
 
Join Date: Jul 2005
Location: Unknown
 
2007-03-16, 01:28

I think the "buy a little more than you can afford" has to do with the idea that a fixed rate mortgage will generally not change (taxes, etc can change it some), but your income will most likely go up - especially if you are just entering the workforce. Both when we bought our condo, and then when we bought our house, I'd say we were a little uncomfortable with the payment right out of the gate, but within a year, it was no biggie, and after a couple of years, a piece of cake.

I think people who take this mentality are trying to avoid getting two years down the road and wishing they had purchased that one house that was just a little more expensive, but so much more of what they wanted....

I've also heard people who disagree with the mainstream view of "pay off the house as quickly as possible". Rather, they just let the appreciation of the house pay for itself, and invest the extra they would have paid. This only works if you are good at doing the investment part.

Do you know where children get all of their energy? - They suck it right out of their parents!
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