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re: Can I afford a home?
Posted on 1/5/16 at 8:53 am to danilo
Posted on 1/5/16 at 8:53 am to danilo
You would probably cut back on that 1500/month you are saving, but if you could find a 200K house, take 40K from that 65K of savings to put down 20 percent, make the seller pay closing costs, and you would have a debt on house of 160K.
My initial PITI when we bought a new house last year, borrowing 170K, is like $1125/month. This was for a 30 year 3.75 percent fixed loan, no mortgage insurance, but paying 400/month for taxes and homeowners insurance.
Not to mention all of the fun costs of homeownership like fixing things. But you have a 10K emergency fund, would still have 25K in savings/other investments, and would still be able to save money.
So then the question is... do you want to do this? 725/month is great for rent and you are saving like crazy. No kids, no spouse, no ties holding you down. If a job offer comes that would make you pick up and move, you could do so easily while renting. Plus if/when you get married and have kids, you will have different ideas about what you want.
Now, you could buy now, and sell later on if the market is great, or turn this house into rental prop. That's not for everyone.
Depending on where you live, I think some areas are becoming overheated and if interest rates tick up some more, values may start to taper off.
My initial PITI when we bought a new house last year, borrowing 170K, is like $1125/month. This was for a 30 year 3.75 percent fixed loan, no mortgage insurance, but paying 400/month for taxes and homeowners insurance.
Not to mention all of the fun costs of homeownership like fixing things. But you have a 10K emergency fund, would still have 25K in savings/other investments, and would still be able to save money.
So then the question is... do you want to do this? 725/month is great for rent and you are saving like crazy. No kids, no spouse, no ties holding you down. If a job offer comes that would make you pick up and move, you could do so easily while renting. Plus if/when you get married and have kids, you will have different ideas about what you want.
Now, you could buy now, and sell later on if the market is great, or turn this house into rental prop. That's not for everyone.
Depending on where you live, I think some areas are becoming overheated and if interest rates tick up some more, values may start to taper off.
3
Posted on 1/5/16 at 8:56 am to LSUFanHouston
quote:
You would probably cut back on that 1500/month you are saving, but if you could find a 200K house, take 40K from that 65K of savings to put down 20 percent, make the seller pay closing costs, and you would have a debt on house of 160K.
My initial PITI when we bought a new house last year, borrowing 170K, is like $1125/month. This was for a 30 year 3.75 percent fixed loan, no mortgage insurance, but paying 400/month for taxes and homeowners insurance.
Not to mention all of the fun costs of homeownership like fixing things. But you have a 10K emergency fund, would still have 25K in savings/other investments, and would still be able to save money.
So then the question is... do you want to do this? 725/month is great for rent and you are saving like crazy. No kids, no spouse, no ties holding you down. If a job offer comes that would make you pick up and move, you could do so easily while renting. Plus if/when you get married and have kids, you will have different ideas about what you want.
Now, you could buy now, and sell later on if the market is great, or turn this house into rental prop. That's not for everyone.
Depending on where you live, I think some areas are becoming overheated and if interest rates tick up some more, values may start to taper off.
I agree with all of this. Nice post
Posted on 1/5/16 at 9:13 am to LSUFanHouston
You bought in Metairie, I presume?
In in OP's shoes but younger and have slightly more net worth. I don't want to buy a house in the suburbs yet at my age bc I have that dreadful shite to look forward to for the vast majority of my life most likely. I don't particularly want to afford what a decent house in Orleans would cost until my salary significantly increases if personal financial doomsday were to come soon for whatever reason. For selfish reasons, I'm hoping the Orleans market crashes soon bc I'm having a hard time justifying $300/sqft in neighborhoods I'd like to live.
Though like lynx says, enjoyment in life shouldn't come at the expense of incessant savings. Finding the balance between financial safety & doing things you want to do is a difficult balance to find for most.
In in OP's shoes but younger and have slightly more net worth. I don't want to buy a house in the suburbs yet at my age bc I have that dreadful shite to look forward to for the vast majority of my life most likely. I don't particularly want to afford what a decent house in Orleans would cost until my salary significantly increases if personal financial doomsday were to come soon for whatever reason. For selfish reasons, I'm hoping the Orleans market crashes soon bc I'm having a hard time justifying $300/sqft in neighborhoods I'd like to live.
Though like lynx says, enjoyment in life shouldn't come at the expense of incessant savings. Finding the balance between financial safety & doing things you want to do is a difficult balance to find for most.
Posted on 1/5/16 at 1:56 pm to LSUFanHouston
Absurd thread.
Can't handle this board anymore.
You could easily afford a 200k home if you could put up 10-20%.
Can't handle this board anymore.
You could easily afford a 200k home if you could put up 10-20%.
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