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 Aim for a place you can afford with a monthly mortgage that leave you enough money for saving and emergency cash fund that could cover up to eight months of living expense. Add about 40 percents to cover home insurance, utilities and repairs to your monthly mortgage payment.

 

Check into buying a townhouse or condominium apartment. They are usually less expensive than a single-family home and you will pay a separate monthly fee known as maintenance that covers shared expenses such as the gardener, security, and helping common areas ship-shaped. Ask about how many times the fee has been raised in the past 5 years and by how much, so you can get decent idea of what to expect down the road. Choose condominium where at least 90 percent of the owners live in their units rather than rent them out. It makes sense in term of community and affects the resale value. You need to be careful and thorough. Get a real estate lawyer to make sure there aren’t any lawsuits against the owner or any other legal problems. Also check how sound proof your unit is before signing the contract.

 

The absolute safest mortgage is a 15 or 30 year fixed-rate loan.

 

If you are 50 years old and intend to live in your home forever, then try to get the mortgage paid off before you retired. The biggest cost in retirement will be housing. If your mortgage is paid off before you retire, you will have reduced your income needs.