How much extra can you afford to spend next year? I have read several reports on how much home prices increased last quarter over a year ago, and I am personally baffled by how low interest rates are, they should be about double where they are currently. Maybe money isn’t an issue for you, but if it is, what is your pain threshold? $5,000, $25,000, $100,000?
The bond market is really choppy these days. If you are going to borrow most of the purchase price it is something you should watch closely. There are many online payment calculators, find one and run a couple of examples, some with current interest rates, and then again with a 1% bump in the rate, multiply the difference by the number of payments, do this sitting down.
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.