how do you decide? $ from wedding...payoff debt or house?
cynthia
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how do you decide? $ from wedding...payoff debt or house?
Hi All - Just curious on your thoughts...sometimes it's better to ask total strangers than people close to you involved! Here's the situation... We found a home, click here, where we live in Rochester. It is completely move in condition... However, I am scared to death about owning a home! I guess it's more the finances...and if we can do it. Do you think 1) exhaust savings and payoff all credit card debt, and wait a year to purchase, or 2) use savings, purchase home, live to work to pay for the house? How do you know? I don't want to end up in foreclosure (I know that may be a stretch, but that's what keeps me up at night). My new husband and I just cannot come to a middle ground...help!
wc0143
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Re: how do you decide? $ from wedding...payoff debt or house?
I think it would depend on how much credit card debt there is!
Charly
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Re: how do you decide? $ from wedding...payoff debt or house?
we were in the same boat and decided to buy. We only put down 5% (80/15/5) so it wasn't really necessary to exhaust all over our cash. The mortgage payment will be higher the less you put down, but we needed the cash for the wedding. Also you can make sure you don't have any prepayment penalties and once the wedding is over you can pay more into the mortgage and don't forget interest & real estate tax is deductible.
IMO If you can afford the monthly payments its better to invest! You can take out a home equity loan if you need to also.
MrsTC
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Re: how do you decide? $ from wedding...payoff debt or house?
what we did was paid off our debt, then got pre-approved for a mortgage and started house hunting. It lowered our overall debt ratio and we got a better interest rate, etc.
swags1016
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Re: how do you decide? $ from wedding...payoff debt or house?
I would also pay off debt first. There is so much that you have to do to a house even if it is move in condition, things that you will want to buy and other expense that are not expected. Plus as Jenn said it is better when you go for a mortage. I can tell you we probably had just under 20k left in the bank after closing and we have spent a lot of it and our house (other than the floors, painting and putting carpets in) was move in condition.
cynthia
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Re: how do you decide? $ from wedding...payoff debt or house?
Thanks everyone...I came up with a one year plan. After that, ALL debt will be paid off. I agree, THEN we can start looking again. Even at 8 months. My dear husband (love him to death!) doe snot think that once you move into a new 'move in' condition house there will be other expenses. I just feel if we go through with the house, the debt will never go away...minimum payment here, minimum payment there. If after one year it's gone, we can really start new.
August2004
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Re: how do you decide? $ from wedding...payoff debt or house?
def pay off the debt first.
Dani00518
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Re: how do you decide? $ from wedding...payoff debt or house?
We paid off all of our debt first and are now looking for a house!
Kriss2c
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Re: how do you decide? $ from wedding...payoff debt or house?
If you are only making the minimum payments on your CCs, you will never get out debt. You need to budget and start really paying those bills down. Even an extra few hundred plus the minimum will make a VERY noticable difference in 6 months.
