When a lower mortgage payment isn't the answer | Shelley Rowton | Move To Realty | (512) 507-5779
About two years ago, I helped out an agent in my office by showing her family member a home that they ultimately ended up purchasing. It satisfied all the things they needed. It was pretty darn close to perfect. Large detached garage with an apartment upstairs, plenty of parking so the boat wouldn't be in the way, a smaller yard, etc.
The key to this story is the garage apartment. They have rented it out easily twice for $700/month since purchasing it. Their full mortgage payment is only $1300, so $600 is all they really pay out of pocket.
Now they want to move so that their lower mortgage payment is closer to the $1000/range. This would be great, other than the fact that it will end up costing the $400 MORE than they pay out of pocket now. That is, unless they find the unicorn walking down the yellow brick road with a chupacabra and Bigfoot - another house with garage apartment delivering another $700/month renter!
The problem is, despite being wonderful, intelligent people, they don't associate the rent with their monthly payment. I'm not sure why, and my agent friend is trying every which way to keep them in this house to make sure they avoid financial disaster.
So the moral of the story is simple....when looking at your house payment, look at all the factors, whether it is that rental income, the length of commute/cost of living where you do, etc. A lower mortgage payment isn't always the answer.
Moral of this lower mortgage payment story: Don't miss the forest for the trees!