When a Lower Mortgage Payment Isn't the Answer

Real Estate Broker/Owner with Move To Realty 0548926 Texas

When a lower mortgage payment isn't the answer | Shelley Rowton | Move To Realty | (512) 507-5779

Money Growing on TreesAbout 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 mortgageUnicorn 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!


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Using cutting edge tools and technology paired with old-fashioned hard work, I help my clients efficiently buy and sell real estate throughout the Austin, Texas area. Not only do I possess the market knowledge to help you fulfill your real estate dreams, I am equipped with the skills and savvy to negotiate for and protect your interests as you move into the next phase of your life. Whether you are searching for your first home, buying a second or vacation home, or downsizing into something new, I will be sensitive to what you want - I'll never try to sell you something you don't want or need! If I sound like someone you would want to partner with in your next purchase or sale in the greater Austin, Texas area (including Lake Travis, Lakeway, Spicewood, Cedar Park, Leander, Round Rock, Liberty Hill, Lago Vista, Jonestown, Georgetown, Austin and beyond), I hope you will feel welcome to contact me!

 Shelley Rowton | Move To Realty

Gladly serving clients throughout Travis, Williamson and Hays Counties, TX

(512) 507-5779 direct

shelley@movetorealty.com | http://www.movetorealty.com


Comments (2)

Susan Jacobsen
The Alliance Group Realty - Hilton Head Island, SC
20 Years Providing WOW Real Estate Service

SHelley - you mean you haven't seen that unicorn??? :-) I'm sensing from your post your frustration and not to use another analogy but we can always lead the horse to water but often can't get them to drink. Thanks for sharing and this rent/mortgage payment coverage can, for some reason, be difficult for people to understand as it relates to the whole picture. Good luck with them!

Mar 28, 2014 10:49 AM
Shelley Rowton
Move To Realty - Austin, TX
ABR, RSPS - (512) 507-5779 MoveToRealty of Austin

I'm totally looking for that unicorn right now for several clients!  Not just the "lowering my mortgage payment" unicorn, but the "a lot for not much" variety too! Thanks for stopping by my blog, Susan.

Mar 28, 2014 01:05 PM