Buying first house

You might want to wait a bit and see what things look like around the summer of 2016/2017.

The federal reserve just instituted its first rate hike, and there is quite a bit of debate right now as to whether this is a one off move or part of a hiking cycle that will take rates to 2%. If it is the latter, it will probably take them all of 2016 to get there given the 25 basis point move they just made. It's a bit unusual to have a central bank taking a hawkish stance at a time where most economic data indicate the fundamentals are softening. If this is a one and done, or another 25 basis points and done you won't have much to fear from interest rates on a potential mortgage.

Even if rates go all the way to 2%, if you wait a year and save more for a down payment you're going to be that much better off.

Meanwhile, if the economy turns south you'll likely find a better property for the same money or get what you've been looking at force less.

http://www.zillow.com

While the estimates aren't always accurate, I'd check the price/tax history of any home you are considering. They often reflect what the original list price was and if any price cuts have been made.

If you're looking at buying the cheaper house and moving in 4-6 years, I'd wait and get the more expensive one.

One wife, one house: one of the keys to financial success.

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Buying first house