How shall we buy our first house?

[an]

UCguy, it sounds like you really want to buy and seem to be looking for confirmation. If you want to buy today, if you can easily afford the payment and in your position, I personally would put down as little as possible. Assuming the minimum down payment is around 5%, I rather keep the other 5% as a rainy day fund. As long as you get a loan that doesn’t have a prepayment penalty for the PMI, you can always pay off the remaining amount to remove the PMI when you have the cash while not wiping our your rainy day fund. It’s not a good idea to go flat out like that and put all your eggs in 1 basket. You never know what might happen.

If you’re considering Scripps because of the schools, you might also want to check out this are of Mira Mesa: http://www.sdlookup.com/MLS-110005031-11270_Spitfire_Rd_San_Diego_CA_92126. This area have an option to go to Scripps HS.

[UCGal]

[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.

PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.

Channel your inner cheapskate and penny pinch and save till you have your 20% down.

I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.

[UCGal]

[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.

PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.

Channel your inner cheapskate and penny pinch and save till you have your 20% down.

I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.

[UCGal]

[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.

PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.

Channel your inner cheapskate and penny pinch and save till you have your 20% down.

I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.

[UCGal]

[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.

PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.

Channel your inner cheapskate and penny pinch and save till you have your 20% down.

I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.

[UCGal]

[quote=UCguy]Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?[/quote]
Ideally yes. But it may not work for your time frame.

PMI is giving money away. You guys have great income… Can you maximise your savings to get the 20% as soon as possible – it will save you $ in the long run. And I already voiced that the 401k thing can bite you big time if one of you has a job change.

Channel your inner cheapskate and penny pinch and save till you have your 20% down.

I agree with AN that Mira Mesa should be considered. The schools are better than the perception if you look at API scores. (This board and AN opened my eyes to that. I suffered the common misconception that Mira Mesa schools were sub-optimal.) It’s a better commute to UCSD so that’s a bit of a trade off for the longer commute to north county.

[scaredyclassic]

Ok here’s what I think today. Too much delayed grtification is demoralizing. So, saving for retirement and saving for a downpayment is just too much, it ducks the energy out if both goals. Stop contributing to the 401k till you get 20 percent.

Wait, dammit what is the company match. I hate to leave money on the table

but. …but…

Ahhh… I don’t know. But pmi sucks. Somehow get to that 20 percent. But no bank robberies

[scaredyclassic]

Ok here’s what I think today. Too much delayed grtification is demoralizing. So, saving for retirement and saving for a downpayment is just too much, it ducks the energy out if both goals. Stop contributing to the 401k till you get 20 percent.

Wait, dammit what is the company match. I hate to leave money on the table

but. …but…

Ahhh… I don’t know. But pmi sucks. Somehow get to that 20 percent. But no bank robberies

[scaredyclassic]

Ok here’s what I think today. Too much delayed grtification is demoralizing. So, saving for retirement and saving for a downpayment is just too much, it ducks the energy out if both goals. Stop contributing to the 401k till you get 20 percent.

Wait, dammit what is the company match. I hate to leave money on the table

but. …but…

Ahhh… I don’t know. But pmi sucks. Somehow get to that 20 percent. But no bank robberies

[scaredyclassic]

Ok here’s what I think today. Too much delayed grtification is demoralizing. So, saving for retirement and saving for a downpayment is just too much, it ducks the energy out if both goals. Stop contributing to the 401k till you get 20 percent.

Wait, dammit what is the company match. I hate to leave money on the table

but. …but…

Ahhh… I don’t know. But pmi sucks. Somehow get to that 20 percent. But no bank robberies

[scaredyclassic]

Ok here’s what I think today. Too much delayed grtification is demoralizing. So, saving for retirement and saving for a downpayment is just too much, it ducks the energy out if both goals. Stop contributing to the 401k till you get 20 percent.

Wait, dammit what is the company match. I hate to leave money on the table

but. …but…

Ahhh… I don’t know. But pmi sucks. Somehow get to that 20 percent. But no bank robberies

[xtina]

UCGuy, I’m not much in the mood for crunching numbers now, but I will offer you another point of thought.

You have stated that you are in your early 40s. 30 year loan will take you past your retirement. You need to be able to pay off your mortgage to live comfortably when older! That in it of itself begs urgency. Understandably.

I would also urge you to reconsider the 5 bedroom house. Your housing situation is very much the situation my parents were in when they decided to buy. 3 kids, aging parents. They got a five bedroom house. Now my grandparents have passed away and my sister and I have practically moved out. In a couple more years there will only be two of them living in a 5 bedroom house. I think in hindsight they might have gotten a smaller house and just let everyone swish a bit. Perhaps this will result in a mortgage that is less risky for you at this point.

Very interesting thread.

[xtina]

UCGuy, I’m not much in the mood for crunching numbers now, but I will offer you another point of thought.

You have stated that you are in your early 40s. 30 year loan will take you past your retirement. You need to be able to pay off your mortgage to live comfortably when older! That in it of itself begs urgency. Understandably.

I would also urge you to reconsider the 5 bedroom house. Your housing situation is very much the situation my parents were in when they decided to buy. 3 kids, aging parents. They got a five bedroom house. Now my grandparents have passed away and my sister and I have practically moved out. In a couple more years there will only be two of them living in a 5 bedroom house. I think in hindsight they might have gotten a smaller house and just let everyone swish a bit. Perhaps this will result in a mortgage that is less risky for you at this point.

Very interesting thread.

[xtina]

UCGuy, I’m not much in the mood for crunching numbers now, but I will offer you another point of thought.

You have stated that you are in your early 40s. 30 year loan will take you past your retirement. You need to be able to pay off your mortgage to live comfortably when older! That in it of itself begs urgency. Understandably.

I would also urge you to reconsider the 5 bedroom house. Your housing situation is very much the situation my parents were in when they decided to buy. 3 kids, aging parents. They got a five bedroom house. Now my grandparents have passed away and my sister and I have practically moved out. In a couple more years there will only be two of them living in a 5 bedroom house. I think in hindsight they might have gotten a smaller house and just let everyone swish a bit. Perhaps this will result in a mortgage that is less risky for you at this point.

Very interesting thread.

[xtina]

UCGuy, I’m not much in the mood for crunching numbers now, but I will offer you another point of thought.

You have stated that you are in your early 40s. 30 year loan will take you past your retirement. You need to be able to pay off your mortgage to live comfortably when older! That in it of itself begs urgency. Understandably.

I would also urge you to reconsider the 5 bedroom house. Your housing situation is very much the situation my parents were in when they decided to buy. 3 kids, aging parents. They got a five bedroom house. Now my grandparents have passed away and my sister and I have practically moved out. In a couple more years there will only be two of them living in a 5 bedroom house. I think in hindsight they might have gotten a smaller house and just let everyone swish a bit. Perhaps this will result in a mortgage that is less risky for you at this point.

Very interesting thread.

[Author]

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