Anyone disagree with FH/FW on what to spend on a house?

My FH constantly wants to go for more expensive houses or condos than I feel comfortable with...We ran all our numbers, and were approved for a mortgage for more than I would like to spend (if we took the mortgage for that amount, we would have no $ for vacation, eating out, etc.). We made an offer on a condo for an amount I felt comfortable with, but they counter-offered a much higher amount. FH wants to go higher and negotiate to meet them between the two offers, but I just don't feel comfortable with it (we are only talking about a difference of 10,000 probably, but I really don't want to go that much higher than we had originally decided on). It's starting to be a real source of arguments between us...Anyone else in the same boat?

ETA: I was not in love with that particular condo--I think there may be something better out there for us, and do not want to settle, and also pay more than we would like to...

posted by swags1016

If you don't love it then don't go for it. You need to love a purchase this big!!

I agree.

However, if you do love it, then you and FI need to agree on a set amount that you are willing to go up. And keep to that set amount.

You will find something, it will take time and patience. I know, it is very frustrating.

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Posted by swags1016

If you don't love it then don't go for it. You need to love a purchase this big!!

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Good advice. And even if you do love it...you have to stay within your finances. One of the biggest mistakes people make are over-stretching themselves on their home purchase. You may love the house...but if you have no cash for entertainment...you will be miserable anyways.

I agree that you need to be comfortable but at the same time $10,000 isn't going to make that much of a difference in your mortgage payments. For example, the difference between a $300,000 and a $310,000 is $1,750.72 a month and $1,809.08 a month (that's based on a 5.75% rate for 30 years). So if you both really love a place it might be worth it for an extra $60 a month.

I know over time the $60 a month adds up but you also have to figure out if it's worth it to you. Is it worth skipping going out to dinner once a month to have the extra money for the mortgage? That's what the 2 of you need to decide.

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Posted by Jenn524

I agree that you need to be comfortable but at the same time $10,000 isn't going to make that much of a difference in your mortgage payments. For example, the difference between a $300,000 and a $310,000 is $1,750.72 a month and $1,809.08 a month (that's based on a 5.75% rate for 30 years). So if you both really love a place it might be worth it for an extra $60 a month.

I know over time the $60 a month adds up but you also have to figure out if it's worth it to you. Is it worth skipping going out to dinner once a month to have the extra money for the mortgage? That's what the 2 of you need to decide.

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Jenn is right, $10,000 is not a HUGE difference money wise but if that $60 is going to be a tremendous about of money to you a month and you don't LOVE the house then I wouldn't do it. If that $60 is the only thing holding you back and you love the house, I say go for it!

We went $20,000 over what my Hubby wanted to spend but when we sat down and crunched the numbers and realized the difference in the quality and size of the house that $20,000 made, it was worth it for us and the difference in the mortage was not going to kill us.