Re: A spin-off question to the post about being depressed about buying a house...

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Posted by SPITSBRIDE

We are putting 5% down at contract which is tonight and another 5% at closing. I'm breaking out in hives just thinking about the large check we have to write tonight

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I know how you feel, but it will so be worth it. When I bought my co-op apt. I had to put 10% at contract and then 10% at closing. It hurts but it's worth it in the end.

Re: A spin-off question to the post about being depressed about buying a house...

20%-- I think that if you dont put 20% down there is some sort of fee you get charged every month until you reach the 20%--we want to avoid that.

Re: A spin-off question to the post about being depressed about buying a house...

probably 10%. I don't want to wipe out our savings.

we might do a 80/20 loan

Re: A spin-off question to the post about being depressed about buying a house...

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Posted by aliwnec10

we have $50,000 + whatever $ we get from the wedding.

It's funny because most young couples our age don't have nearly that much money for a down payment, so we thought we would have the upper hand. Looks like we DON'T afterall because it's not nearly enough!

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for a 700k home, no it is not, honestly, I would look for something smaller and not on such a large plot of land. Unless you and your DF are making over 200k I am not sure how someone would be able to afford a mortgage payment on a 700k home with less than 100k downpayment. It would be really difficult. Have you thought of getting a townhome, or condo or something in a different area?
I say this because a 600,000 mortgage with a 5.75% interest rate would work out roughly to a 3,500 monthly payment. That does not include taxes, utilities, food, entertainment, etc. You would need at least a monthly income of 7,000 to not feel it. THat would be 84,000 after taxes. So if you put away pre tax savings in a 401k and take out fica, mecair/mcaid, etc. You would have about 150,000-175,000 anual income. That is with a 100,000 downpayment.

Re: A spin-off question to the post about being depressed about buying a house...

we plan to put about $30k down, hopefully!

We will probably do two mortgages to avoid PMI (plus the interest on the second mortgage is tax deductible).

We are hoping to buy next year b4 the wedding, but it will be a fixer upper - good thing FH is handy.

and hopefully, even if prices don't fall, they will stabilize!!

Re: A spin-off question to the post about being depressed about buying a house...

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Posted by lrs2005

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Posted by aliwnec10

we have $50,000 + whatever $ we get from the wedding.

It's funny because most young couples our age don't have nearly that much money for a down payment, so we thought we would have the upper hand. Looks like we DON'T afterall because it's not nearly enough!

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for a 700k home, no it is not, honestly, I would look for something smaller and not on such a large plot of land. Unless you and your DF are making over 200k I am not sure how someone would be able to afford a mortgage payment on a 700k home with less than 100k downpayment. It would be really difficult. Have you thought of getting a townhome, or condo or something in a different area?
I say this because a 600,000 mortgage with a 5.75% interest rate would work out roughly to a 3,500 monthly payment. That does not include taxes, utilities, food, entertainment, etc. You would need at least a monthly income of 7,000 to not feel it. THat would be 84,000 after taxes. So if you put away pre tax savings in a 401k and take out fica, mecair/mcaid, etc. You would have about 150,000-175,000 anual income. That is with a 100,000 downpayment.

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I appreciate your advice. However, we're not doing less than a 1/2 acre of land. No we don't make over $200,000 a year, but we can manage a $3500 mortgage payment.

As for buying a condo or townhouse... we don't have those in East Hampton. It's a little small out here. We're lucky we even have a starbucks out here (no big chains allowed). Besides, we want a house and only a house. Thanks for the advice or thoughts though!

Re: A spin-off question to the post about being depressed about buying a house...

http://biz.yahoo.com/usat/060117/13342630.html?.v=2


This is a link (I hope it works) to an interesting article on yahoo finance.

Re: A spin-off question to the post about being depressed about buying a house...

Between 60-100,000. Where we are looking, thats about 50% of the cost. We want the smallest mortgage payment possible. With that much it will be around $600 per month for the house.

Re: A spin-off question to the post about being depressed about buying a house...

I hope to put 100,000 to 150,000 down, depending on what FH and I can sell my house for. I bought a tiny house when I was still single in 2001, and put 50,000 down then. Of course,just because I made a profit on that house, doesn't make it much better to buy a house now...I have to pay that higher price too. I wish now I bought a bigger house, and got a roomate or something, but who knew what would happen over the course of those 4 years. Hard Decisions. I just hope we can get something decent for 400,000ish....

Re: A spin-off question to the post about being depressed about buying a house...

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Posted by aliwnec10
I appreciate your advice. However, we're not doing less than a 1/2 acre of land. No we don't make over $200,000 a year, but we can manage a $3500 mortgage payment.

As for buying a condo or townhouse... we don't have those in East Hampton. It's a little small out here. We're lucky we even have a starbucks out here (no big chains allowed). Besides, we want a house and only a house. Thanks for the advice or thoughts though!

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Ah, I didn't realize that you were that far out on the island. Have you thought about just purchasing some land and then building something small with the potential to expand it later. The prices in the Hamptons are so crazy. I can see why it is I grew up in Locust Valley which has the same no big chains allowed restriction. There still is no starbucks there. It is very difficult.

Re: A spin-off question to the post about being depressed about buying a house...

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Posted by lrs2005

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Posted by aliwnec10
I appreciate your advice. However, we're not doing less than a 1/2 acre of land. No we don't make over $200,000 a year, but we can manage a $3500 mortgage payment.

As for buying a condo or townhouse... we don't have those in East Hampton. It's a little small out here. We're lucky we even have a starbucks out here (no big chains allowed). Besides, we want a house and only a house. Thanks for the advice or thoughts though!

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Ah, I didn't realize that you were that far out on the island. Have you thought about just purchasing some land and then building something small with the potential to expand it later. The prices in the Hamptons are so crazy. I can see why it is I grew up in Locust Valley which has the same no big chains allowed restriction. There still is no starbucks there. It is very difficult.

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Right now we've given up on buying a house. We're thinking of just buying land for ONLY $400,000. Then in a year or two we're going to build the house we want. My FH's uncle has a modular home business so we're hoping to get one at cost. At least that's what we're told. So we'll see. It just seems so hard to even find some decent land!!

Re: A spin-off question to the post about being depressed about buying a house...

I would say 20%

Re: A spin-off question to the post about being depressed about buying a house...

Re: A spin-off question to the post about being depressed about buying a house...

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Posted by soontobe2007

Tell me if this is crazy, but my FH's grandfather has been putting money aside for his 3 grandchildren since they were all born for a house one day. He spent the money on tax free municpal bonds and they are matured. All 3 kids (including FH) have quite a bit of money for a house. (i think its between 400-500k) I think this is very rare and the only people i know who do this are his family. This is not inheritence its separate money for a house one day. He said he didnt want them to worry about that when they got older. I think he is so amazing for doing this for them.

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Any chance that he wants a new granddaughter?? (is that spelled wrong... it looks funny to me)