crustycurmudgeon
Well-Known Member
Yes, I've been a renter my whole life, but my offer has been accepted on a house. I do have a 45 minute commute to look forward to, though. :shrug I couldn't afford anything closer to San Jose.
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I'm buying my first house
- Thread starter crustycurmudgeon
- Start date
Gigantopithecus
Well-Known Member
Congrats man. So begins the joy of homeownership.
We're in a world of real estate hell right now. We finally got another renter for our townhouse, we accepted an offer on our house, and our offer for a new place was accepted the other day. We close on both on Nov 28th. Then the mad dash to move begins.
We managed to get the place we've been looking at for months. It had a contract fall through and came back up for sale, so we jumped on it. 3 bed, 2 bath, 3 acres, potting shed, storage shed, and 60x40 building, and a new John Deere riding lawn mower. $166k.
We're in a world of real estate hell right now. We finally got another renter for our townhouse, we accepted an offer on our house, and our offer for a new place was accepted the other day. We close on both on Nov 28th. Then the mad dash to move begins.
We managed to get the place we've been looking at for months. It had a contract fall through and came back up for sale, so we jumped on it. 3 bed, 2 bath, 3 acres, potting shed, storage shed, and 60x40 building, and a new John Deere riding lawn mower. $166k.
A
Anonymous
Guest
Congrads!
Fst Blk
Well-Known Member
Here's an honest question. Where do you guys like to stay at on home price based on salary. 2 1/2 x yearly salary or what??
Congrats on the house BTW.
Bill
Congrats on the house BTW.
Bill
congrats crusty. :wop
Bill for me, its trying to keep a years worth of mortgage around 30 - 40% yearly take home income. Of course, the lower that percent the better. Over paying principal really helps too. A few hundred dollars or more on the first payment (of a 30 year not) can often take a few payments off the back end.
Bill for me, its trying to keep a years worth of mortgage around 30 - 40% yearly take home income. Of course, the lower that percent the better. Over paying principal really helps too. A few hundred dollars or more on the first payment (of a 30 year not) can often take a few payments off the back end.
Fst Blk
Well-Known Member
We own our place now, but it's become too small for our family IMO. I'd like to buy another, but I don't want to over extend myself trying to buy the biggest house I can afford.
The 30-40% helps. I would be at 33% if I bought the house I have in mind.
Bill
The 30-40% helps. I would be at 33% if I bought the house I have in mind.
Bill
The age old number calls for something in the 33-38% of your gross pay for your mortgage and car payment(s) etc. I think if you can make it at the net numbers you and Jake posted you're in good shape. I guess a good way to look at it is that if you question the affordability...you can't afford it."67 Fastback" said:
If I could do it all over again right now, I would buy something under a 20 year or less mortgage. The payment is not much more than a thirty and the money saved is HUGE. Not too mention, you shave a third of the term or more.
Fst Blk
Well-Known Member
"Horseplay" said:
I low-balled the shit out my take home and didn't include the wife's salary. I just paid my truck off, so I have essentially being paying the same money out for my truck and current mortgage what the new mortgage would cost. I'm just a big sis when it comes to spending big money lol.
Bill
Bill don't forget about taxes, Naturally the more money you have saved and available for a down payment, the more house you can afford. Usually the further out from the city, the cheaper the tax rate and more property you can get.
But in general, lets say you take home 100k a year. 30% = 30,000.
30,000 divided by 12 months = $2500. Add in taxes and insurance of 4k a year or close to 350 a month (probably more if your looking at monster houses), your looking at a loan payment of 2500 - 350 = $2150
Now look at interest, and payments, at the current rates, somewhere around 3.8%, a 30 year note with a present value of $460,000, has a monthly payment of $2143.40
At least that is my thought process with this, i'd be interested in seeing how others determine their value.
Sorry for the derail Crusty.
But in general, lets say you take home 100k a year. 30% = 30,000.
30,000 divided by 12 months = $2500. Add in taxes and insurance of 4k a year or close to 350 a month (probably more if your looking at monster houses), your looking at a loan payment of 2500 - 350 = $2150
Now look at interest, and payments, at the current rates, somewhere around 3.8%, a 30 year note with a present value of $460,000, has a monthly payment of $2143.40
At least that is my thought process with this, i'd be interested in seeing how others determine their value.
Sorry for the derail Crusty.
See, i like the security of the longer term, The interest may be a tad higher, but if you can afford the shorter term, why not get the longer one, and make the shorter terms payments or more, when ever you can. It really is amazing how fast they come off the back end."Horseplay" said:
Before we completely screw up your thread...congrats Crusty!
All the talk of the loss of the mortgage deduction on our 1040 has gotten my attention. It would make too many here choke it I posted what I deduct each year on that one. To me, this is the only reason to extend a term and pay more interest. If your income is high enough/right this deduction and other bits make sense in the end to pay more interest. You can come out dollars ahead.
In general, go shorter term with a lower rate and pay that thing off faster.
Property taxes are the thing you need to pay very close attention to. Make sure you do your homework here. A couple years ago I got a last minute look at a property my daughter and son-in-law were about to put pen to paper and buy. Something jumped out at me about the taxes and such. I did some research and found out that the development they would be buying into had changed hands. The original builder went belly-up. Part of the agreement with the city and the builder was that they would pay for all the underground utilities, etc. They didn't. The new homeowners got stuck picking up that bill in the form of a special assessment that would remain in place for 20 years! This house would cost my daughter an extra $3500 a year on top of the mortgage and property taxes. Yeah. Trying reselling that baby. No wonder I then started to notice that every other house in that neighborhood had a for sale sign n the yard!
Take your time and do your research.
All the talk of the loss of the mortgage deduction on our 1040 has gotten my attention. It would make too many here choke it I posted what I deduct each year on that one. To me, this is the only reason to extend a term and pay more interest. If your income is high enough/right this deduction and other bits make sense in the end to pay more interest. You can come out dollars ahead.
In general, go shorter term with a lower rate and pay that thing off faster.
Property taxes are the thing you need to pay very close attention to. Make sure you do your homework here. A couple years ago I got a last minute look at a property my daughter and son-in-law were about to put pen to paper and buy. Something jumped out at me about the taxes and such. I did some research and found out that the development they would be buying into had changed hands. The original builder went belly-up. Part of the agreement with the city and the builder was that they would pay for all the underground utilities, etc. They didn't. The new homeowners got stuck picking up that bill in the form of a special assessment that would remain in place for 20 years! This house would cost my daughter an extra $3500 a year on top of the mortgage and property taxes. Yeah. Trying reselling that baby. No wonder I then started to notice that every other house in that neighborhood had a for sale sign n the yard!
Take your time and do your research.
Congrats on the house.
As some of you know, we have been looking to move out of Wisconsin for the past year or so. It is crazy how different the housing prices can be in other areas of the country.
For what we paid for our house we are looking at a smaller house with less features almost everywhere we are interested in moving. It amazes me anyone can afford a decent house in California.
We built our house 10 years ago and did a twenty year mortgage. When we did, we just went with my salary and not including my wifes so I knew if one of us lost a job we could still afford our house. The problem in this country is most people look at what's the most the bank will give me and then spend that. Then when something goes wrong they can't afford their mortgage.
As some of you know, we have been looking to move out of Wisconsin for the past year or so. It is crazy how different the housing prices can be in other areas of the country.
For what we paid for our house we are looking at a smaller house with less features almost everywhere we are interested in moving. It amazes me anyone can afford a decent house in California.
We built our house 10 years ago and did a twenty year mortgage. When we did, we just went with my salary and not including my wifes so I knew if one of us lost a job we could still afford our house. The problem in this country is most people look at what's the most the bank will give me and then spend that. Then when something goes wrong they can't afford their mortgage.
Back to Crusty...........................Congrats Frank. What town? So, does this mean that we'll have a garage to work in when we attack your Mustang TODO list this winter? Be sure you have 220v in the garage.
A
Anonymous
Guest
Congrats Frank!! Now you can do whatever you want, whenever you want.
Fst Blk
Well-Known Member
Tax rates are really cheap here. My taxes on my house valued at 90k are $650 a year.
We're looking at a house for 190ish, payments on 30 years @ 4% interest are roughly 1000 with taxes and insurance it should be 1200-1300 a month. That should be well within reason, I can afford it, but the loosenness of money pivots on my wife's salary. 1200-1300 is about 35-40% my take home. I just don't like the idea of being strapped for cash. Been there done that.
Bill
We're looking at a house for 190ish, payments on 30 years @ 4% interest are roughly 1000 with taxes and insurance it should be 1200-1300 a month. That should be well within reason, I can afford it, but the loosenness of money pivots on my wife's salary. 1200-1300 is about 35-40% my take home. I just don't like the idea of being strapped for cash. Been there done that.
Bill
Re: Re: I'm buying my first house
Wow. I wish our tax rate was that low. Wisconsin taxes are very high. My property taxes are $4,000.
"67 Fastback" said:
Wow. I wish our tax rate was that low. Wisconsin taxes are very high. My property taxes are $4,000.
Just consider the market is going to change. Inflation is likely coming. In my uneducated opinion, now is the time to sign onto a mortgage. It will only get harder in the future to buy a home. Your peak earning years are ahead of you, anyway. Go for it."67 Fastback" said:
Re: Re: I'm buying my first house
Please...that's close to a quarterly bill here in the wonderful area of Chicagoland suburbia."RapidRabbit" said: