Hi, I'd want to say everyone here gives really great feedback. Ive been here for a couple of months and met some really nice people. In all, our general goal is to offer wisdom and advice for people that has never been through an experience.
As most of you know from my other post, I'm getting ready to build a house. We're still awaiting for the plot review with the builder to go over structural changes(ex: add 3rd car garage etc etc). By the time we close in 6 months, we'll have 30% to put down. My question is, should we pay for the upgrades and structural changes upfront or just add it to the mortgage and pay for it? IMO, I think paying for the upgrades upfront will save us in the long run, yet still retain the same monthly mortgage amount.
For example:
Method A
Total cost of home is $434,000
Down payment $130,000
Loan amount- $304,000, monthly payments(piti) around $2500
------or--------
Method B
Pay upfront Structural/upgrades- $40,000
Total Cost of home is $394,000
Down Payment- $90,000
Loan Amount- $304,000, monthly payments(piti) around $2500
So in theory, if people have cash to put down on a house, why don't they do method b? It'll report a lower market value(final sale price is lower) and the property tax will be lower. I just wanted everyone's opinion as my goal is to lower property tax and monthly payments.