• About Us
  • Privacy Policy
  • Contact
Mortgage Insurance Center
  • Home
  • Mortgages
  • Health Insurance
  • Home Insurance
  • Life insuranace
  • Finance Laws
    • Banking Laws
    • Assets
    • Interest Rate
    • Loans
No Result
View All Result
  • Home
  • Mortgages
  • Health Insurance
  • Home Insurance
  • Life insuranace
  • Finance Laws
    • Banking Laws
    • Assets
    • Interest Rate
    • Loans
No Result
View All Result
Mortgage Insurance Center
No Result
View All Result
Home Mortgages

I Made Lots of Mistakes With My First Home Purchase. Here’s Why I Don’t Regret It

by Staff
May 21, 2022
in Mortgages
0
I Made Lots of Mistakes With My First Home Purchase. Here’s Why I Don’t Regret It
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

[ad_1]

A young adult carries a box of items, including a large plant, into their new house.

Image source: Getty Images

Everything doesn’t necessarily have to be perfect for buying a house to make sense.


Key points

  • Many years ago, I purchased my first home.
  • I made several mistakes, including not shopping around before getting my mortgage.
  • I don’t regret the purchase because I made a profit on selling the house despite the errors.

When I purchased my first house many years ago, I wasn’t very experienced financially and I made some bad decisions during the buying process. Unfortunately, this ended up making my monthly mortgage payments cost more than they would have if I’d made better choices.

Despite the errors I made during the purchasing process, I do not regret buying that first home. Here’s why. 

These are the big mistakes I made

There were two big mistakes I made when I bought my first house:

  • I did not shop around for my mortgage loan: My real estate agent at the time recommended that I work with a specific mortgage lender that she had worked with in the past. I took her advice and contacted only that lender and no others. Unfortunately, this means I missed out on the opportunity to compare different interest rates. It’s very likely that I ended up paying more interest than necessary since I didn’t shop around. The lender also gave us a lot of hassle during the application process, which made the transaction more stressful than it needed to be. 
  • I made a small down payment: I put down only 10% on the house, which my realtor encouraged and my mortgage lender allowed. Because of my small down payment, I had to pay several hundred dollars per month for private mortgage insurance. This insurance didn’t protect me if I stopped being able to make payments, but it did protect my lender if a foreclosure occurred. If foreclosure happened, the lender would not face uncompensated losses due to the PMI I was paying for. 

Together, both the PMI cost and the fact I likely got stuck with a higher interest rate than I should have, made my home purchase much more expensive each month and over time. 

This is the very good reason why I don’t regret the purchase

Despite these mistakes, I do not regret buying my first house. That’s because I owned it for several years and then sold it for a very substantial profit that was enough to give me a hefty down payment for my next home.

Ultimately, because of the fact that the property went up in value and I was able to sell it for more than I paid for it, the purchase was a good decision that helped me build long-term wealth. 

Now, just because everything worked out well in my situation doesn’t mean that will be the case for everyone who makes home-buying errors. Ideally, it’s best to make sure you shop around to get the lowest possible mortgage rate and to make a larger down payment.

But, the reality is, we don’t live in an ideal world. You may need to buy when rates are on the upswing or before you have the money to put down 20%. And, as my situation shows, properties tend to go up in value over time and sometimes a purchase can work out even if it’s not made under ideal conditions. 

As long as you make a wise choice about your purchase, don’t overpay for your home, and are sure you can comfortably afford the payments, you stand a good chance of your home purchase paying off in the end. 

The Ascent’s Best Mortgage Lender of 2022

Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible.

That is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).

Read our free review

[ad_2]

Source link

Previous Post

Interest rate hikes and recession: How are they related?

Next Post

Gift of loan repayment changes lives for Hispanic female engineering students

Next Post

Gift of loan repayment changes lives for Hispanic female engineering students

Popular Posts

Ajanta Pharma : Newspaper Advertisements
Life insuranace

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

by Staff
July 28, 2022
0

Close Provided by: TAIMING ASSURANCE BROKER CO.,LTD. SEQ_NO 4 Date of...

Read more

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

20% interest rate on credit cards! Here’s how to avoid paying those high rates :: WRAL.com

Sens. Murphy, Blumenthal, Colleagues Reintroduce the Behavioral Health Coverage Transparency Act – InsuranceNewsNet

$1 billion in loans still available for agricultural funding in Ohio

How Long Do Car Accidents Stay on Your Record?

Rocket Mortgage Classic Wagers: Pick To Finish Top-10

Load More

Popular Posts

Ajanta Pharma : Newspaper Advertisements

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

by Staff
July 28, 2022
0

The perks and pitfalls of adjustable-rate mortgages in 2022

by Staff
June 13, 2022
0

Propy introduces blockchain title and escrow service

Propy introduces blockchain title and escrow service

by Staff
May 26, 2022
0

Ajanta Pharma : Newspaper Advertisements

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

July 28, 2022

20% interest rate on credit cards! Here’s how to avoid paying those high rates :: WRAL.com

July 28, 2022
Edelweiss General Insurance launches India’s first on-demand, mobile telematics-based comprehensive motor insurance – SWITCH

Sens. Murphy, Blumenthal, Colleagues Reintroduce the Behavioral Health Coverage Transparency Act – InsuranceNewsNet

July 28, 2022

Categories

  • Assets
  • Banking Laws
  • Finance Laws
  • Health Insurance
  • Home Insurance
  • Interest Rate
  • Life insuranace
  • Loans
  • Mortgages

Tags

home loans mortgage personal loan
  • Privacy Policy
  • contact us

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • About Us
  • contact us
  • Home
  • Home 2
  • Home 3
  • Privacy Policy

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.