Monthly payment considerations

While you may qualify for a particular loan payment you need to make sure that it fits with the rest of your financial goals. Does making a large mortgage payment leave you with enough money to meet your other important needs? Buying a home should create a tax shelter, a long-term investment as well as offer a stable living environment. But it's important that the home that you buy is in balance with the rest of your goals, financial and otherwise. Once you qualify for a particular loan, you need to make sure the payments fit within your overall financial goals. Does making a large mortgage payment leave you with enough money to take care of other important needs such as college funding or saving for retirement? If you are just starting out and don't have any competing goals, buying a more expensive home is right for you. Your income will probably increase, making the payments more affordable. Consider what your short, mid and long term financial goals are and then make sure that the amount of house you purchase and the monthly payment fit in with your other plans.

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