Buyers Remorse

columbodialJune 1, 2006

We signed a contract to have our home built about two weeks ago. We still have leeway on the design etc. Our current mortgage payment including an auto loan is about 30% of takehome pay. With new mortgage there will be no auto loans or any other debt, but the mortgage will be 40% of takehome pay. However, we are still thinking about all the extra money we would have to spend on other things or save if we stay in our current home. Things won't be tight in the new home, but we will have to budget more. Is it normal to have second thoughts after signing a contract for a more expensive home. Who has gone through this?

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    Bookmark   June 1, 2006 at 1:31PM
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I have second--through 9,000th thoughts. It plain scares me. So many variables. But it's what I want to do, so I am going to push through and hope I'm right. If I'm not-- well, it's only money. (gulp)

Our current mortgage is about 7% of gross and the new one will be at least 20%. Sounds okay on paper. But there's no guarantee that our income will stay constant-- is has for several years, but still no guarantees. I like living under our means and I am very anxious about the jump.

I am praying that when we move in the new $$$ will feel okay. With land payment gone, after the tax break, it should feel about the same. Really hoping that will be true.

    Bookmark   June 6, 2006 at 6:33PM
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When we bought our house in 1981, we had only $15 left in the bank. Yes,we had second thoughts. The mortgage interest rate went up twice between contract and closing,there were so many delays.We almost backed out more than once. The seller originally agreed, then refused to pay the bank "points" so we ended out shelling out an extra $6500 for that. In those days our mortgage was 50% of our combined take-home pay. Last year we finally made our last mortgage payment, thanks in part to the death of my MIL and a substantial inheiritance. We used that money to pay off both our mortgage and home equity loan. Last week a house like ours down the street sold for $440,000. Yes, there were some hard times, but if you love your home, you will have a wonderful life there and someday ,like us, you may even say "It was tough, but it was the best thing I ever did in my life."

    Bookmark   June 7, 2006 at 12:49PM
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House rich, cash poor. It all depends on the trade-offs you are willing to live with.

Have you calculated how much all the "extra" stuff is going to cost in a brand new house?? You know, the extra landscaping, curtains, blinds, entry mats, outdoor furniture, hoses, shelves, etc. that seem to be "must haves" when in a new home?? I know that both times I've moved into brand new homes I've spent at least $1500 at Home Depot within the first month. And over the course of the next year or two we've spent alot more trying to decorate and get furniture, pictures, plants, and accessories that fit our new space.

Also, since we bought this house 3 years ago I've gotten pregnant and am now staying home, bringing our income down almost 45%. This was not something we planned on 3 years ago... and housing prices have gone up so much that even if we could sell our house and move to something smaller (like from our 2100 sq. ft. house to a 1400-1500 sq. ft. house) the prices are so artificially high still that we just wouldn't be able to get much.

    Bookmark   June 8, 2006 at 10:47AM
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