Why Buying Now Holds the Secret to Years of Lasting Happiness in Your Life

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Almost anyone can buy a home – and these days, most everyone wants to, given the historically low mortgage rates and the very low home prices.  But buying in a way that proves successful on a long-term basis, however, is what differentiates those who end up with lasting happiness and prosperity throughout their life from those who just own a big house.  Since doing anything for the right reasons is a far better approach, it’s a valuable lesson to understand what your motivation should be for buying a home.  In this article, we outline the difference between buying for the sake of having material possession versus buying to enjoy life and provide for your family.

Whether you are a first-time homebuyer considering a new home, someone who has suffered a short sale but are ready to rebuild and become a homeowner again, or an investor – this message applies to you.

Why Buy Now?

Click on this link to see how interest rates have fared during the last several months, few years, a decade and longer.  The further back you go, the more astounding today’s rates seem.  For many of us in the real estate industry the current rates that hover around the 3s and 4s (percentage points) are unprecedented!  

The Secret to Lasting Home Buying Success
But here is the big secret to lasting health, happiness and yes, even wealth:  if you buy your home for the right reason, you will be able to live happier in it.  Buying your home based on whether or not you can afford the monthly payments is a big mistake.  Buying your home with the intent to be able to pay it off as soon as possible so that you can live free of a mortgage payment – THAT is success!  Imagine what you can do with all that extra cash each and every month.  You can treat your family on vacations, buy a new car every few years, pay for the kids’ college and live guilt-free as you build your wealth while at the same time living happily, in a paid-off home.  

Can Anyone Buy a Home Using This Principal?

Yes!  As long as you buy a home that is within the realm of your capability to manage it, then you can buy a house.  I do not suggest investing in a property that is bigger than you need or better than you need, just so that you can keep up with the Joneses.  By choosing a property that you can realistically pay off within 20 years instead of the 30-year term that you will most likely get for your mortgage, you are doing yourself and your family a huge favor.  This is a concept that nationally syndicated radio talk show host and financial expertDave Ramsey highly advocates.  In a bad economy or even worse economic conditions than today’s, the Joneses would find themselves looking at a short sale or foreclosure while you and your family would count on securely living in a mostly or fully paid off home.

Why Is This Principal So Spectacular?

As simple and rudimentary as it is, buying a home and going into debt within your means is a concept that is becoming more and more obsolete.  Where here we are talking about choosing a home that is reasonable and not overboard, most people believe that buying a home based solely on the monthly payment amount and the seeming affordability of that payment, without regard for anything but how big the house is.  Though very basic and nothing new, the simple idea that one should buy within their means with the full intent to pay off the mortgage as soon as possible is one that will open up many new doors in the future.

The Single Best Way to Shorten Your Loan Term

Even if you do not earn a very large paycheck, the key to paying off your mortgage sooner and to shave off years (not to mention tens of thousands of dollars) from the term is to chip away in small increments, month after month after month.  By making extra payments, no matter what amount you can handle, you will be tackling your principal impacting the amount you owe in a significant way.  To demonstrate just how significant the time and monetary savings are by doing this, input your estimated or existing mortgage payment information into this calculator that factors extra payments and shows the entire repayment schedule.  

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You cannot afford to miss this opportunity to free yourself and your family from what could be years of mortgage captivity if you get locked into future, much higher rates or worse – unable to secure a mortgage on a home.  For more information or a customized consultation, visit your Realtor.