As it turns out, there were a lot more options than we had considered. I've recently run the mortgage numbers based on a $360K mortgage on a five year fixed - I wanted to show you that even though I post our best case scenarios sometimes, we are aware of how ever $10,000 will affect us.
Based on $360,000 Mortgage:
- With a 5 year fixed rate (4.34%) - Our monthly payments would be $1,771.44
- With a 5 year variable rate (2.25%) - Our monthly payments would be $1,374.16
We will be choosing a 5 year variable rate on a weekly basis to align with our pay schedule - so our payments would be $316.89/weekly which works out to be a bit less then the monthly payment (approx $106.60). To ensure that we can afford the 'worse case' scenario - I make sure we can always afford the payments based on a five year fixed rate.
Here are examples of our worst case/best case. I can't say for sure exactly where every dollar would go, but this shows that we can afford the house either way - we simply afford ourselves more flexibility if we keep the mortgage lower.
I always feel better about things after running the numbers, and I'm still confident in our ability to afford this mortgage, with the upgrades we want.