If you recently began looking at single-family homes and are trying to find one that works well for you and your family, this is an excellent thing. Having a nice home to live in that is comfortable and a good fit for your family can make life much more enjoyable for you. Owning a home is also much more desirable than renting for most people. However, before you buy, there are some important things that you should think about in regards to your single-family home. This article will discuss 2 things to consider when purchasing your single-family home.
15- Or 30-Year Loan?
One big decision that you need to make is how long your want your loan term to be. You have the option to go with a 15- or 30-year loan on most homes, and either loan will change the price of your monthly payment quite a bit. If you choose to go with the 30-year loan, then you will pay less each month, but you will pay much more interest because you are paying on your home for a combined total of 30 years and you will be paying a lot of interest this entire time. In contrast, if you decide to go with a 15-year loan, your payment will be more, but you will be paying much more each month to principle.
New Vs. Old
There are a lot of pros and cons to both purchasing a new home or a used home. Because of this, it is very important that you have weighed out the pros and cons before you begin looking at single-family homes, or at the very least before you make a decision to buy one.
New homes are great if you want something that is move-in ready, but they can cost a bit more. Older homes are perfect if you want the quality and timeless feel that a lot of older homes possess, or if you have a desire to do a renovation. However, you will likely run into some issues with the house simply because it is old, and many of these things will not be covered under the home warranty. You may also want to talk with your real estate agent to find out what is available in your area in both new and used listings, just to even see what your options are. Once you have a better idea of what's available, you can decide if you'd rather buy new or old.