It sounds like you have fallen into the same mental accounting trap that causes new car buyers to add a bunch of upgrades without giving it a tenth of the thought that they would to a stand-alone purchase equal to that same cost. YES an extra $250 - $350K IS a whole lot of money! Compound that by the fact that it is borrowed money for which you will be charged interest!gophermobile wrote: ↑Tue Mar 12, 2019 9:26 amSo given that I can't help but wonder if the difference between a nice ($1-1.1 mil) and this one is really that big a difference. It's hard to find property in SoCal that has much of a yard and this place has a good sized one, that means a lot for me. My wife loves the house style - it was built in 1929. I would think financially speaking the age is a bad thing as it means more stuff needs fixing / updating (electrical, plumbing etc). It seems to be in good condition though - would still need to get an inspection.
Borrowing an extra $250K for 30 years (at the mortgage interest rate you specified) adds $1272.22/month to your mortgage (ignoring the impact of the larger amount on taxes and insurance) and results in the payment of $207,997.52 in interest over the course of the loan. If the extra amount borrowed is increased to $350K, those numbers jump to $1,781.10/month more on the mortgage and $291,196.53 in total interest. At least to my mind that is a lot of money!