I have just sent off an e-mail to my step-father, telling him that I want to seriously talk to him about buying his old house, and I feel completely out of my depth.
Last night, he said that he didn't care if he made a profit off of the sale of the house so long as he didn't have to continue paying two mortgages. I know he and my dad have been struggling these last six months with not being able to sell their old place. Once we went over the numbers (down payments, interest, taxes, insurance, etc) it looked like a monthly mortgage payment would be about $40 more than I pay for my half of the rent right now. Sure I'd have to pay full utilities myself, but if it's not that much more than my current budgeted housing costs, why not?
There are things to consider, like maintenance and repairs, but I can also deduct the mortgage interest on my taxes next year. (Unless they change the tax code - but with the housing market as it is that's not likely) All I need to do is determine how much money I can use as a down payment and to cover closing costs.
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