They are considering postponing their purchase for a couple of years until she goes back to work and their monthly income is higher. The problem is I can almost guarantee interest rates will be higher as well as home prices.
In my opinion a simple solution to their concerns is to apply for a 30 year mortgage now at the current low interest rate which offers them an acceptable lower monthly payment. They want a larger home for their growing family and can afford more at today’s home prices. The flexibility with a 30 year mortgage is they have the option to make a full payment to principle only and pay down their mortgage in roughly 17 years.
A good Mortgage Lender can provide guidance buyers need at no cost! They should be able to review their overall debt and see where that extra money could be best focused. It's great to pay down a mortgage, but with such low interest rates tied to their mortgage, those same "extra" dollars may have more impact if channeled elsewhere like on a credit card carrying much higher interest rates.
Mortgage rates fluctuate with market conditions, and are based on credit scores, down payment, and loan to value.
Here are the today's mortgage rates, October 30, 2015, provided by Russell Stout, Division Manager at Lone Star Financing.
Dorie Dillard, Realtor-Canyon Creek- NW, Austin TX Homes For Sale
Coldwell Banker United Realtors
Office (512) 346-1799