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re: In the market for a house...
Posted on 5/8/24 at 11:19 am to jlovel7
Posted on 5/8/24 at 11:19 am to jlovel7
quote:
Buy the most house you can AFFORD because you will get absolutely frickED if you have to move soon after you buy to accommodate a growing family.
Buy as much house as you can afford because you will quickly out grow the house via family growth and accumulation of stuff.
What is your profession? Assuming you're in the early stages of career you will likely see significant wage growth over the next 10 years.
I would also recommend buying when you are ready to buy and block out the noise such as prices, interest rates, inflation, etc. There will always be reasons to wait. Bite the bullet and make it work.
1
Posted on 5/8/24 at 11:19 am to JohnnyKilroy
quote:
350k with 18% down at 2.5% interest is 1,134
I'm using a calculator that says that exact number. Then you add to the payment property taxes and insurance and in my area it bumps to $1717.
Posted on 5/8/24 at 11:21 am to jlovel7
500k house in a 160k income seems a bit high, especially with interest rates being ridiculous
Posted on 5/8/24 at 11:21 am to GeauxGriff
quote:
He shouldn’t jeopardize that by getting himself stuck under a $500k house at a high interest rate.
Yeah, I absolutely agree that a 500k house with the current rates is probably a bit expensive for 160k income. Just sucks, because it was "affordable" with that income back when rates were ~4% or so.
Posted on 5/8/24 at 11:23 am to jlovel7
quote:
$160k.
quote:
below 500k
Posted on 5/8/24 at 11:23 am to jlovel7
Keep renting and saving cash for at least 20% down and try to do a 15 year mortgage. No rush to get into a place in this market. You're better off renting for sure especially with the way you guys are contributing to retirement and debt free. Congratulations on that!
Posted on 5/8/24 at 11:23 am to UncleRuckus
quote:
500k house in a 160k income seems a bit high, especially with interest rates being ridiculous
This, along with 45% of the take home cash going elsewhere. The interest rate on a $500k home is going to be insane right now. I wouldn't even worry about it.
As another mentioned, the unseen future costs (home maintenance, vehicles) will add up.
Posted on 5/8/24 at 11:23 am to LoneStar23
15 year mortgage is dead, nobody can afford those now based on home prices
Posted on 5/8/24 at 11:24 am to LoneStar23
quote:
Keep renting and saving cash for at least 20% down and try to do a 15 year mortgage. No rush to get into a place in this market.
The calculations on the previous page had him at about $1,500 a month all in.
He also posted this in the OP
quote:
Currently paying $1950 a month for rent at our townhouse.
He would be able to save more and live a better lifestyle if he bought.
I'm doing the same thing right now in terms of looking for a house to buy, and the math is pretty much always where my monthly payment would be, all in, for the house vs what we're currently paying in rent. And for the time being that math is not in favor of buying.
This post was edited on 5/8/24 at 11:26 am
Posted on 5/8/24 at 11:26 am to Chucktown_Badger
quote:
The calculations on the previous page had him at about $1,500 a month all in.
That was a side convo
Op is looking at a 3500+ monthly payment for the houses he is looking at.
Posted on 5/8/24 at 11:26 am to LoneStar23
quote:
Keep renting and saving cash for at least 20% down and try to do a 15 year mortgage.
OP looks forward to becoming a homeowner in 2040.
Posted on 5/8/24 at 11:27 am to JohnnyKilroy
quote:
That was a side convo
Op is looking at a 3500+ monthly payment for the houses he is looking at.
Yeah, then that math is a bit off. Might be worth socking away as much as possible for a while to get the down payment higher and monthly all in payment down.
This post was edited on 5/8/24 at 11:28 am
Posted on 5/8/24 at 11:27 am to armytiger96
I think buying on hopes of wage increase is very very risky. If you factor in wage increases you have to factor in unemployment and layoffs
This post was edited on 5/8/24 at 11:28 am
Posted on 5/8/24 at 11:47 am to KamaCausey_LSU
quote:
Any option to buy land and build?
This is what I have done on every home I owned. Find an up-and- coming area and a new subdivision. Go in and purchase a lot. Over the next year or two, pay off the lot in full.
With 500K as the budget
The lot cost should not exceed 100K
The paid off lot will be your 20% down (100K)
Sounds like you have another 20% saved for a down payment (100K)
Even if the rate is current at 7% for a 500K total loan,
you will be at 1950/month for a 30 year @7%
ETA:
quote:
Stay in the townhome until rates go back under 5%.
Buy the lot NOW and pay it off in full while you wait for rates to drop.
This post was edited on 5/8/24 at 12:09 pm
Posted on 5/8/24 at 11:53 am to fareplay
quote:
I think buying on hopes of wage increase is very very risky. If you factor in wage increases you have to factor in unemployment and layoffs
And the fact that housing price increases have outpaced wage growth for years now.
It would help OP to calculate a hard upper limit on how much house they can afford at current wages. Also, if you're serious about buying soon, get pre-approved for your loan amount (pre-approvals are usually good for 60-90 days.)
The consensus in this thread is that the upper limit is probably around $350k. Keep looking, have app/email notifications on for your search criteria (size/price/acreage/rooms), and if you see something that looks like it's right, schedule a showing ASAP (as in same day if possible). Don't pass on something you like because rates might fall.
Posted on 5/8/24 at 12:11 pm to jlovel7
You are saving a lot. Maybe temporarily reroute some or all that savings into a down payment fund for a bigger down payment that results in a lower mortgage.
Posted on 5/8/24 at 12:54 pm to jlovel7
OP, there are no laws that say get married, buy an expensive house, have kids, and join the rat race as soon as possible.
Not to mention all the crap your wife will want to buy to fill the house that will be thousands of dollars. New furniture, lawn equipment, appliances. Closing costs. Home ownership really sucks IMO. I’d honestly rather rent sometimes
We didn’t buy a home until 7 years after marriage and even 2 kids. Kept renting because we weren’t sure we would stay on east coast. I would take your time and even wait til you decide to have kids so you can see how much daycare will be, how much house you need vs want, and what you can really afford. Keep saving your arse off and put down as much as you can on the house. Unless y’all have some kind of trust or parents helping y’all then that’s another story.
Not to mention all the crap your wife will want to buy to fill the house that will be thousands of dollars. New furniture, lawn equipment, appliances. Closing costs. Home ownership really sucks IMO. I’d honestly rather rent sometimes
We didn’t buy a home until 7 years after marriage and even 2 kids. Kept renting because we weren’t sure we would stay on east coast. I would take your time and even wait til you decide to have kids so you can see how much daycare will be, how much house you need vs want, and what you can really afford. Keep saving your arse off and put down as much as you can on the house. Unless y’all have some kind of trust or parents helping y’all then that’s another story.
This post was edited on 5/8/24 at 1:35 pm
Posted on 5/8/24 at 1:05 pm to Supermoto Tiger
Is there different loan for lots?
Posted on 5/8/24 at 1:06 pm to jlovel7
Just put 3-5% down save the rest and enjoy homeownership
Better get in now before the values explode when rates drop further
Better get in now before the values explode when rates drop further
Posted on 5/8/24 at 2:36 pm to Commandeaux
quote:
Wait until rates come down next year if you're lucky.
rates might go down, but the price of the houses will probably go up. he can always refinance for the lower interest rate if he buys today.
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