taking mortgage depending on savings to repay in emergency

Guest 0.10 Dollars($)

I have some savings in my bank account. I am planning for a loan of $3,75,000 for a house. I need not pay any down payments. But I am afraid since I am self employed and may have trouble at some point of time as the income, although fair, is not fixed every month. Under those circumstances I am depending on the savings that I have to make payments for the amount that may fall short every month. Is it a wise decision?

Samantha · Posted: Mon Dec 05, 2005 3:07 pm Post subject:

Hi Brian,

I understand that you are desperate to own your home. All of us want to have a sweet home of our own. But don't take any decisions in a hurry as it may take the sweetness away.

I don't think it will be a wise decision to depend on your savings to make up the shortage in difficult period. Savings are built with time and to lose it just like that will not be good.

I would rather suggest if you have such doubts then better choose a home with less cost. Savings is a security and you should try to keep that intact as far as possible.

Try to shop around for some more houses with less cost. I am sure you are going to get one suitable for you. But don't bang on your savings or don't take chances thinking that the price of your house is going to go up with time and you can make more money out of that and make yourself more secured.

Though with general trend price for the house goes up but the market may fall any time and then you may land in trouble.

So, my advice would be to go for a cheaper house and then when your income becomes stable and increases so that you can afford easily, then go for a costly house.

God bless you.

For MortgageFit,
Samantha

Guest 0.10 Dollars($)

Hi Samntha,

I think I need to plan my decision again. What you said seems correct. I shall look for an affordable house.

Thanks,
Brian

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