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Message
re: First Time Buying a House
Posted on 1/20/16 at 2:30 pm to Salmon
Posted on 1/20/16 at 2:30 pm to Salmon
quote:
didn't your parents give you like $80k after college?
No, my parents aren't wealthy by any means. I admit that I had money saved up from college that most people don't have access to. But I legitimately still to this day have not touched that money. Although it was a nice safety net.
I admit I was blessed with a good paying job as well. I realize that most people can't save up 20k in a year like I did (travelled and lived off the company a lot). I was able to save up my down payment easily. That's why I say it's possibly a good idea for someone to not put down 20% on a starter house. But it should be a starter house, not a 300k house.
This post was edited on 1/20/16 at 2:31 pm
3
Posted on 1/20/16 at 2:30 pm to KG6
quote:
50k down payment
Gone are the days where savings account get you 5-8% interest just for sticking money in it. It takes a long time to save up that kind of money AND build a retirement fund AND save for emergencies.
Even if you make a lot of money coming out of school, many people have student loan debt.
Financing options are now easier because everyone can't wait until they are 40 to buy things the way people used to.
Posted on 1/20/16 at 2:32 pm to lsupride87
that's one hell of a rate
Posted on 1/20/16 at 2:32 pm to MrSmith
quote:
I did FHA and my interest rate is 3.1%. That's pretty damn low
Yea I could have worded that better. I meant that most FHA loans will carry PMI for the life of the loan (if I am not mistaken). RD loans will come with the higher interest rate.
Posted on 1/20/16 at 2:32 pm to Bmath
quote:
Gone are the days where savings account get you 5-8% interest just for sticking money in it. It takes a long time to save up that kind of money AND build a retirement fund AND save for emergencies.
Even if you make a lot of money coming out of school, many people have student loan debt.
the only way I could save money was to instead of paying $1250 a month in rent, I would pay $1500 for a house note.
Posted on 1/20/16 at 2:34 pm to KG6
quote:The "starter houses" in the NOLA area are going to be around 200-260k.
I admit I was blessed with a good paying job as well. I realize that most people can't save up 20k in a year like I did (travelled and lived off the company a lot). I was able to save up my down payment easily. That's why I say it's possibly a good idea for someone to not put down 20% on a starter house. But it should be a starter house, not a 300k house.
1600 sq ft
metairie
252k
Posted on 1/20/16 at 2:34 pm to KG6
quote:
But it should be a starter house, not a 300k house.
You realize that in some areas....300k IS a starter house
Posted on 1/20/16 at 2:34 pm to lsupride87
quote:
If you can't save 60k, you can't afford a 300k house. I disagree
Perhaps you can afford the house, but you're making some questionable financial decisions at best.
In general, if all you can afford is 3% down then you're probably going to struggle to do much else in the near future.
Posted on 1/20/16 at 2:35 pm to yellowfin
quote:I mean yeh but I wouldnt call that rare for the last few years. I know it is higher now, but I bet today one could get a conventional loan putting down 5% and get a rate of 4.5% with no PMI
that's one hell of a rate
Posted on 1/20/16 at 2:36 pm to KG6
quote:This is a starter house in most major cities.
But it should be a starter house, not a 300k house.
Posted on 1/20/16 at 2:36 pm to lsunurse
quote:
You realize that in some areas....300k IS a starter house
If your living in one of these areas and you are not making great money, you should move.
Posted on 1/20/16 at 2:37 pm to slackster
quote:
In general, if all you can afford is 3% down then you're probably going to struggle to do much else in the near future.
there is a large gap in 3.5% and 20%
perhaps you could put down 12%, just not 20%, but 12% or 3.5% doesn't really matter, and with interest rates so low, why put down 12%?
Posted on 1/20/16 at 2:37 pm to PetreauxCat
that's why people live in the suburbs and commute
Posted on 1/20/16 at 2:38 pm to slackster
quote:
In general, if all you can afford is 3% down then you're probably going to struggle to do much else in the near future.
yea im really hurting, not.
it's not that all you can afford is the 3%. It makes a hell of a lot more sense to keep the extra $30,000 in an investment account or savings and gives you the ability to you know buy furniture and all the first time home owner costs associated with that house.
Posted on 1/20/16 at 2:38 pm to PhiTiger1764
quote:Got ya. Although I only have to carry PMI up to 20%
I meant that most FHA loans will carry PMI for the life of the loan (if I am not mistaken)
Posted on 1/20/16 at 2:39 pm to slackster
quote:So false. SOOOOOOOOOO false. A couple that makes 150k a year means they have take home pay of 7500-8000 a month roughly. Lets say there rent is 1500 a month. They like to enjoy life so lets say they have two cars, eat out a lot, etc etc. They manage to only save 2,000 a month. That means it would take them 3 years to save 60k. But instead of saving up all that money, they like to splurge on a yearly vacation.
Perhaps you can afford the house, but you're making some questionable financial decisions at best.
In general, if all you can afford is 3% down then you're probably going to struggle to do much else in the near future.
So, couple McFun desides to but a 300k house. Their mortgage payment in total becomes around 2k a month max. So now couple McFun still manages to SAVE 1500 a month. Explain how they cant afford the house?
Posted on 1/20/16 at 2:39 pm to lsupride87
I'm looking for my first house now and I have the scratch to put down 20% on a house in my price range $200k-$250k. However, that wouldn't leave me with much left in savings, so I'll likely put down around 10% to give me some breathing room.
Posted on 1/20/16 at 2:39 pm to lsunurse
quote:
You realize that in some areas....300k IS a starter house
And if you can't afford it then you can't afford it. Income is usually higher in major cities as well, so there's that. I realize that if you life in Manhattan, your cost of living is going to be insane. Doesn't mean that suddenly overextending yourself is perfectly acceptable. It may be common, but not the best practice.
Posted on 1/20/16 at 2:39 pm to yellowfin
quote:Metairie is a suburb......
that's why people live in the suburbs and commute
This post was edited on 1/20/16 at 2:40 pm
Posted on 1/20/16 at 2:41 pm to KG6
quote:We talkin bout Metairie bruh, not Manhattan
I realize that if you life in Manhattan, your cost of living is going to be insane.
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