Tilted Forum Project Discussion Community - View Single Post

Cynthetiq · 05-24-2008, 02:33 PM

I'm not trying to sway you from buying a home. thingstodo is right, look for a less expensive home. Look for the same things that are in the more expensive ones, since they tend to attract better buyers. Examples of this are 2 bedrooms versus 1, 3 vs. 2, garage versus covered parking.

I'm not sure where you are in the US, I assume AK by your profile, but are there any properties that you can purchase in your area that are in the $75,000 range? It may be a 1 bedroom condo/townhouse, it gives you ample 20% and move in money.

here are a couple thoughts about the 20k you have for savings...

Think of the 20k you are putting into the house for savings.. it is for longer term savings than "rainy day" but more like 10-30 years down the road. Yes, you'll start your rainy day fund over again, but if there was a "rainy day" that required your attention, you could have other new options like home equity line of credit (HELOC). The caution is to not over borrow for frivilous "rainy day" things, like new TVs, cars, and other depreciating assets. HELOCs are best setup mainly for improving the house in some manner, like new roof, carpeting, new kitchen, bathroom improvements, etc.

The more you pay upfront the less you pay in the backend. If you look at mortgage calculators and calculate the total payments over 30 years, you'll see that you've paid almost twice the amount of that you borrowed to originally purchase the house.

If you were to move in with your sister, you state "small place," does that mean you'll be sleeping on the sofa? have your own room?

If you were to scrimp and save all that you could, how much would you be able to save in 1 year? this should give you an idea and goal as to what the timeframe you'd realistically be living with your sister.

just because the amount you're able to borrow goes up doesn't mean that it's a better deal for you. it means you're qualified to buy more house, but also means you're on the hook for more in monthly payments especially if you choose to not put 20% down.

05-24-2008, 02:33 PM	#8 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	I'm not trying to sway you from buying a home. thingstodo is right, look for a less expensive home. Look for the same things that are in the more expensive ones, since they tend to attract better buyers. Examples of this are 2 bedrooms versus 1, 3 vs. 2, garage versus covered parking. I'm not sure where you are in the US, I assume AK by your profile, but are there any properties that you can purchase in your area that are in the $75,000 range? It may be a 1 bedroom condo/townhouse, it gives you ample 20% and move in money. here are a couple thoughts about the 20k you have for savings... Think of the 20k you are putting into the house for savings.. it is for longer term savings than "rainy day" but more like 10-30 years down the road. Yes, you'll start your rainy day fund over again, but if there was a "rainy day" that required your attention, you could have other new options like home equity line of credit (HELOC). The caution is to not over borrow for frivilous "rainy day" things, like new TVs, cars, and other depreciating assets. HELOCs are best setup mainly for improving the house in some manner, like new roof, carpeting, new kitchen, bathroom improvements, etc. The more you pay upfront the less you pay in the backend. If you look at mortgage calculators and calculate the total payments over 30 years, you'll see that you've paid almost twice the amount of that you borrowed to originally purchase the house. If you were to move in with your sister, you state "small place," does that mean you'll be sleeping on the sofa? have your own room? If you were to scrimp and save all that you could, how much would you be able to save in 1 year? this should give you an idea and goal as to what the timeframe you'd realistically be living with your sister. just because the amount you're able to borrow goes up doesn't mean that it's a better deal for you. it means you're qualified to buy more house, but also means you're on the hook for more in monthly payments especially if you choose to not put 20% down. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!