![]() Now, I know there are accountant types out there who will talk about deductions and appreciation and “building equity” and all that. That is financially brutal, and I am underestimating that figure! In order to have $300,000 available to purchase your home you had to earn over $400,000. Before you paid the mortgage each month, even while you were saving up the down payment, you were making payroll taxes and having other deductions removed from your paycheck. However, here is where reality really takes a bite. Add in the down payment and “fees” and you have a total of approximately $300,000. That payoff, after 240 months, is about $275,000. They have found their home, they accept the monthly payment challenge, and settle in for the long haul of paying off the mortgage. Some people stop and congratulate themselves at this point. Your monthly payment will be $1145.60 per month, plus a few dollars for various fees that banks add on. Let’s say you have worked hard and saved $20,000 for a down payment and you acquire a 20-year mortgage at 6% interest on the $160,000 principal. With the changes in the real estate market and house values these days, this is still an average price. As an example let’s use a three bedroom modular Cape on a modest lot in a nice subdivision. Let’s focus on two of those vital facts.įirst is the real cost of a home, in terms of money. The decision to buy a home is such a complicated operation that some vital facts become obscured during meetings with real estate dealers, lawyers and bankers, while searching for your new home, during the process of getting qualified, and handling the details of a closing. Purchasing your home is that weighty financial commitment. The subject of this plan is the most expensive commitment most people make in their lives. Older people with reasons to start over, voluntarily or out of necessity, can use it too. This plan would help young people just starting out in life. Let’s consider a plan that will get you the money and power needed for you and your family plus make life interesting in a positive way. ![]() It is not quite that simple, but close enough for this article. The root of all these problems is money and the power that comes with money. We have world crises, national troubles, state level problems, county and local ills, and most likely your own family worries about the future. ![]() There is an old Chinese curse, “May you live in interesting times.” Curse or not, times are interesting. ![]()
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