Could Buying Your First House Be a Financial Mistake?

Buy a house

It’s official – we’ve moved!  We’re finally all settled into our new house in our new city, and we’re loving every minute of it! This is only the second house my wife and I have purchased in our adult lives.  Our first one was back when I was 24 years old. With our first house for sale on the market at almost the same price we paid for it back 11 years ago, this got me thinking: What if we hadn’t bought a house when we first got married, and did something else with our money?  Would we be better off financially? Although this is a fun little question to ponder, it’s actually a very … [Read more...]

What Size Mortgage Can I Afford and How Can I Figure That Out?

What Size Mortgage Can I Afford

How big is “too big” when you’re thinking price tag on a new house? That’s the question that’s on everyone’s mind when they first go new-home shopping: What size mortgage can I afford? It’s a prudent thing to ask and sensible when it comes to your finances.  Part of the whole Great Recession in 2009 was an issue with home buyers taking on far too high of a mortgage value than they could afford.  (That and getting themselves into mortgage products that were probably not the most ideal for their situation). So to avoid another house buying implosion, a smart consumer will first take a … [Read more...]

Should I Pay Off My Mortgage Early or Look for a Better Return?

should I pay off my mortgage early

I think at some point everyone has thought to themselves should I pay off my mortgage early or do something else with my money? We’re told all the time by the media that sending in a few extra bucks every month with our mortgage payment will help erase thousands of dollars in interest payments – and that’s a good thing! But at what cost? What if you could be doing something else with those “few extra bucks”? Perhaps that something else you could be doing may even lead to a better rate of return …   Asking the Question of Should I Pay Off My Mortgage Early: Where this is all … [Read more...]

The Conventional Home Loan – Don’t Mess It Up This Time Around

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Another one bites the dust …. It’s getting to be a sad site walking around our little neighborhood. All around us there are houses that have slipped into foreclosure.  It’s obvious when it happens. First the house gets really quiet.  Then the yard starts turning brown and overgrown.  And then it becomes official - the bank comes along and posts a legal notice in the window letting everyone know that the people who used to live their let their conventional home loan slip into default. … [Read more...]

Steps to Building a House You Can Love

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The following post is a guest contribution.  If you’d like to write for My Money Design, please feel free to contact me. So you've finally made it!  You've worked and sweat, and you and your family are finally ready to purchase the house of your dreams.  Building a new home can be a fun and exhilarating experience!  But all the steps to building a house can also be a stressful process if they are done incorrectly. … [Read more...]

Which Is Better – Rental Income or a Stock Market Index Fund?

Rent vs Index Fund

Who’s ready for some financial smack-down? If there’s any two groups of investors I can think of that are more divided, it’s those who invest in real estate and those who invest in stocks - like a North and the South of financial planning if you will. So the question here is this: Which one actually has a better chance of making you more money in the long run?  This may be a controversial debate, but we’re going to settle this argument the MyMoneyDesign way – by running the numbers!  So let's see what we come up with ... … [Read more...]

How Much Money Would I Make If I Rented Out A House?

House

When it comes to buying stocks, the old rule of thumb is to “buy low and sell high”. If you’re fortunate enough to understand this saying, then you’ll know that it doesn’t just apply to stocks. It’s meant to teach you to look for opportunities. So even though the value of my home seems to go down, down, down every year, perhaps therein lies an opportunity. As I walk the dog through my neighborhood, there is an abundance of houses for sale. And what’s more is that I KNOW they are selling for FAR less than what I paid for mine. So this gets me thinking: • If I have any aspirations to buy a … [Read more...]

Dos and Don’ts in Mortgage

House and Keys in Female Hands

Are you looking to buy a house? The purchase of your home may be the largest expenditure you will have in your life. Therefore, applying for a home loan is a process that you should not take lightly. The cost of a house is just your beginning expense. Points and the interest you must pay for a mortgage during the term of your loan will be much more than the price of the house. That’s why paying attention to the details of your home loan may turn out to be more important than the sale price of the home. To get the most out of your mortgage, consider the following: … [Read more...]