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Your House: Is Bigger Really Better?
by Kimberly Danger
Your home is probably the biggest
purchase you will make in your lifetime. It's
your castle, your refuge, the place where family
memories are created. It is also your biggest
expense.
In the past 50 years, house sizes
in the United States of America have doubled,
while the size of the average family has gone
down. Do we actually need these
bigger houses, or "McMansions" as they're often
called? Are we buying them simply to "Keep
up with the Joneses?" Can they actually
prevent us from living richer, fuller lives?
Of all the financial mistakes I see and hear
about the most; overextending on a mortgage is
probably the biggest one. Banks, being in the
business of selling loans, will generally
approve homebuyers for the maximum loan that
isn't a huge risk to the bank itself. This isn't
always in the homebuyer's best interest. If
families aren't careful about advocating for
their own financial well-being, they can end up
in over their heads.
Nobody wants to be a slave to their home, but
sometimes that's what happens. Huge monthly
payments that you can barely afford often mean
there's nothing extra left over to allow you to
live your life. Instead, you end up living for
your house.
If you're thinking about trading up, consider
these things:
*Expenses. When considering housing
expenses, many people just look at the basics,
like the mortgage itself and property taxes.
When you're in a smaller home, not only do you
have a lower mortgage payment, you typically
have lower utility bills, lower insurance costs,
and fewer expenses related to upkeep and
maintenance.
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