Exactly, it was a tough bullet to bite when we decided to buy (knowing that we will take a hit, but the trade-off being that we are not in a rental for perhaps half a decade - at times it feels like a consumer decision, doing something because we want it rather than because it's the financially prudent thing to do, but... literal YOLO comes to mind).
We did spend less than our last house, but because the rates went up, even with the big down payment (most of the prior sale proceeds), our mortgage is actually more per month now. At some point, once we're able to refinance, the payment will be lower than our last house. Until then, I'll feel sick about the situation, especially if prices do tank quickly.
Because I'm paranoid about the financial climate, I'm always more likely to keep more cash, even if we have a loan racking up interest (mortgage / car leases are the only debt). My wife would always pay a little extra on the mortgage, she used to convince me and listen to my rants about how we need to keep cash, and then she finally just started doing it every month. After five years we owed like $30,000 less on our house when we sold it, and we saved a few grand in interest.
Exactly, it was a tough bullet to bite when we decided to buy (knowing that we will take a hit, but the trade-off being that we are not in a rental for perhaps half a decade - at times it feels like a consumer decision, doing something because we want it rather than because it's the financially prudent thing to do, but... literal YOLO comes to mind).
We did spend less than our last house, but because the rates went up, even with the big down payment (most of the prior sale proceeds), our mortgage is actually more per month now. At some point, once we're able to refinance, the payment will be lower than our last house. Until then, I'll feel sick about the situation, especially if prices do tank quickly.
I think you made the right choice. Having a landlord sucks!
Absolutely true.
Because I'm paranoid about the financial climate, I'm always more likely to keep more cash, even if we have a loan racking up interest (mortgage / car leases are the only debt). My wife would always pay a little extra on the mortgage, she used to convince me and listen to my rants about how we need to keep cash, and then she finally just started doing it every month. After five years we owed like $30,000 less on our house when we sold it, and we saved a few grand in interest.