I have read a lot of finance books and one of the exercises I completed was to write down the worst money decision I ever made. For me, this was an easy assignment as buying a house was the worst money mistake I have ever made. I lived in Eastern Massachusetts where houses are expensive. I bought an old (1790) house that was cute as a button and only 17 miles from work. 17 miles from the South Shore of Boston thru the big dig construction to Somerville which is just north of Boston. My daily commute was awful!
I didn’t have a 20% down payment and I didn’t do my research in terms of interest rates, closing costs, property taxes… I didn’t love the town the house was located in, I only knew 1 person who lived nearby. I knew my mortgage payment was going to be a huge chunk of change but I was dead set on owning a single family house with a fenced in yard.
Boy did I loved that house! It had 3 bedrooms, 1.5 baths, 2 fireplaces and a beehive oven. It had a huge yard and a garage. Did I mention 2 fireplaces – one in my bedroom!
