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Friday, May 20, 2011

Buying A House? Do the Math

In the heat of house-hunting, it can be easy to keep all the numbers in your head. You debate back and forth over which properties to target and for how much and under what conditions. But as the Trulia blog notes, if you mostly just do this mental math without putting it down on paper it can be easy to talk yourself into less-advantageous deals when the numbers in your head collide with the emotions in your heart.

For instance, the rush of getting that "instant equity" from buying a house for less than it used to be worth — never mind that that price may have been artificially boosted by the bubble — can muddle the cold calculations based on your wages and salary.

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