In 2004, my first mortgage was a 30-year 5/1 ARM at 5.25%. If that information confuses you, don’t worry. I was completely confused too when I signed up for it at 22 years old.
I didn’t care though. After saving up $20,000, I was thrilled to put that money into my first house down payment. I was proud to be a homeowner.
That’s what we’re supposed to do, right? Buy a home so we’re not wasting our money on rent?
Well, homeownership can be a smart move for some, but not the way I did it. I made two mistakes right away with my first home:
- Signing up for a mortgage that I didn’t understand
- Committing to homeownership costs that I could not afford