Budgeting: How to Manage Large Mortgage Payments when Buying a Costly, High-value Home
Some people try to apply for as small of a mortgage payment as they can reasonably afford to, and there is some prudence associated with this line of thinking. After all, recent economic events have shown that those who get over-extended may wind up in a dire financial situation. However, there are also benefits associated with a higher mortgage and buying a slightly larger home if you can comfortably afford to do so. For example, the rate of growth on equity will typically be more significant, and there are tax deductions and tax advantages that may be greater. If you…