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Started By
Message
First Time Home Buying Options// Please Direct, Suggest, or Warn,,,,,,
Posted on 2/17/13 at 10:24 pm
Posted on 2/17/13 at 10:24 pm
The skinny
Have the luxury of staying with folks for a while with very little to pay in bills.
My income- 50,000
Wife income- 40,000
What mortgage (15,30), down payment (%), size (3 of us), etc.. type of situation would be smart for us.
Have the luxury of staying with folks for a while with very little to pay in bills.
My income- 50,000
Wife income- 40,000
What mortgage (15,30), down payment (%), size (3 of us), etc.. type of situation would be smart for us.
3
Posted on 2/17/13 at 10:29 pm to ragacamps
quote:
30
quote:
%
20
quote:
3 of us
Planning on anymore?
quote:
type of situation would be smart for us.
What part of the country on you in? In New York, your 90 won't do shite, in Arkansas, you'll be living pretty nicely.
Posted on 2/17/13 at 10:41 pm to wegotdatwood
Sorry, should have stated this.
We are recently back in the Baton Rouge area. We were living in Minnesota but I took a position back home in BR. We are willing to look anywhere in the BR area.
Definitely planning on having a couple more. Maybe the next one in a couple of years.
We are recently back in the Baton Rouge area. We were living in Minnesota but I took a position back home in BR. We are willing to look anywhere in the BR area.
Definitely planning on having a couple more. Maybe the next one in a couple of years.
Posted on 2/17/13 at 10:46 pm to ragacamps
How much do you have saved up?
What's the market like in BR? I don't have a clue but I'm assuming it's more expensive than Northwest Arkansas. A good starter home here can be found for 150k, a great one home, around 220.
What's the market like in BR? I don't have a clue but I'm assuming it's more expensive than Northwest Arkansas. A good starter home here can be found for 150k, a great one home, around 220.
Posted on 2/17/13 at 10:48 pm to wegotdatwood
Realistically we can have 25,000 saved up by the time we are ready to buy. So not too much but a decent chuck.
Posted on 2/17/13 at 10:50 pm to ragacamps
What range are y'all looking in? My wife and I just bought a home, you'll feel a whole lot better when you buy at or below your means.
You'll see some really nice houses that think would be amazing to have when it would take a lot to make it. Go cheaper than you think.
You'll see some really nice houses that think would be amazing to have when it would take a lot to make it. Go cheaper than you think.
Posted on 2/17/13 at 10:56 pm to wegotdatwood
quote:
you'll feel a whole lot better when you buy at or below your means.
Im trying to get this into my wife's head now.
Looking 165-185 range.
Posted on 2/17/13 at 11:04 pm to ragacamps
20% down is a good number.
I would suggest having an emergency fund of 2-5k (savings account) just for housing costs-- separate from other saving(s). Stuff breaks all the time. When you own, that comes straight out of pocket. Then you'll be safe and conservative.
I would suggest having an emergency fund of 2-5k (savings account) just for housing costs-- separate from other saving(s). Stuff breaks all the time. When you own, that comes straight out of pocket. Then you'll be safe and conservative.
Posted on 2/17/13 at 11:10 pm to ragacamps
quote:
Im trying to get this into my wife's head now.
Looking 165-185 range.
It was hard for my wife until we made an offer on a cheaper house. After that process, we didn't want to go over 160. We were looking at some that were 215 for a while.
Now, we laugh, saying "we were on crack thinking we could afford that."
We ended up with a nice house for 149k.
Posted on 2/17/13 at 11:11 pm to ragacamps
Does she not agree with that range? That's a safe range imo.
Posted on 2/18/13 at 3:19 am to ragacamps
With these historically low interest rates, saving up 20% isn't that important IMO. If you have good enough credit for a conventional loan, your PMI won't be that much anyway. Go 30 year, pay biweekly instead of monthly and pay the loan off much faster than 30 years.
Posted on 2/18/13 at 10:31 am to JonTheTigerFan
quote:
With these historically low interest rates, saving up 20% isn't that important IMO. If you have good enough credit for a conventional loan, your PMI won't be that much anyway. Go 30 year, pay biweekly instead of monthly and pay the loan off much faster than 30 years.
me and the wife have credit scores over 790 and are doing a conventional with 5% down. The PMI on conventional for us is going to be about 120.00 per month less than FHA.
Posted on 2/18/13 at 10:39 am to jojothetireguy
quote:
PMI on conventional for us is going to be about 120.00 per month less than FHA.
be aware of the recent changes that prevent PMI from being eliminated once you reach 22% equity.
Posted on 2/18/13 at 10:40 am to ragacamps
How long are you planning on staying in this house? If you plan on living in this house forever than put 20% down. If this is just a starter house that you will live in for a couple of years, put as little down as possible. The difference in monthly payments won't be as significant and you can use your current money for an investment that will appreciate greater than the interest rate on your mortgage.
This post was edited on 2/18/13 at 10:41 am
Posted on 2/18/13 at 11:07 am to Delacroix
quote:
How long are you planning on staying in this house? If you plan on living in this house forever than put 20% down. If this is just a starter house that you will live in for a couple of years, put as little down as possible. The difference in monthly payments won't be as significant and you can use your current money for an investment that will appreciate greater than the interest rate on your mortgage.
+1. I did the above. Put 3.5% down with an FHA loan this past June. Expecting to stay in the house 2 years (Work reasons to buy a home with that time frame). Pay an extra 125 a month for PMI with the FHA loan but the different between 3.5 and 5% made it worth it with my time frame.
If I remember right, paying bi-weekly or 1 extra monthly payment a year results in the same thing - a shorter loan life. I would just do an extra monthly payment so you aren't stuck with the extra payments if for some reason you need the funds.
Posted on 2/18/13 at 11:17 am to C
quote:
be aware of the recent changes that prevent PMI from being eliminated once you reach 22% equity.
That's an FHA change. He should be ok with conventional.
Posted on 2/18/13 at 11:54 am to C
quote:
be aware of the recent changes that prevent PMI from being eliminated once you reach 22% equity
yeah, i'm not touching FHA. That new law is complete bullshite especially for people in great credit standings. Actually the whole PMI is bullshite for people with a credit score over 750
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