How shall we buy our first house?

[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.

[scaredyclassic]

Ok here’s the plan

purchase the tightwad gazette

eat just spaghetti red sauce and beans for a year.

Don’t buy anything.

Nothing.

Cancel everything that costs money.

Sell anything kinda valuable on eBay.

Start packing up your stuff.

Look for a house.

Stop putting money in 401k .

By the time you find the house you’ll be all packed and have 20 percent

[scaredyclassic]

Ok here’s the plan

purchase the tightwad gazette

eat just spaghetti red sauce and beans for a year.

Don’t buy anything.

Nothing.

Cancel everything that costs money.

Sell anything kinda valuable on eBay.

Start packing up your stuff.

Look for a house.

Stop putting money in 401k .

By the time you find the house you’ll be all packed and have 20 percent

[scaredyclassic]

Ok here’s the plan

purchase the tightwad gazette

eat just spaghetti red sauce and beans for a year.

Don’t buy anything.

Nothing.

Cancel everything that costs money.

Sell anything kinda valuable on eBay.

Start packing up your stuff.

Look for a house.

Stop putting money in 401k .

By the time you find the house you’ll be all packed and have 20 percent

[scaredyclassic]

Ok here’s the plan

purchase the tightwad gazette

eat just spaghetti red sauce and beans for a year.

Don’t buy anything.

Nothing.

Cancel everything that costs money.

Sell anything kinda valuable on eBay.

Start packing up your stuff.

Look for a house.

Stop putting money in 401k .

By the time you find the house you’ll be all packed and have 20 percent

[scaredyclassic]

Ok here’s the plan

purchase the tightwad gazette

eat just spaghetti red sauce and beans for a year.

Don’t buy anything.

Nothing.

Cancel everything that costs money.

Sell anything kinda valuable on eBay.

Start packing up your stuff.

Look for a house.

Stop putting money in 401k .

By the time you find the house you’ll be all packed and have 20 percent

[mp7444]

Can you do 15% and paying less PMI?

For not contributing to 401k option, since we can only contribute $16500/year (idk about 403b), you have to wait a few years to collect this 50k(?) to make 20%. But you have to pay tax for this $16500.

Not sure if I do the math right, but you may be paying $5445/year for that 401k tax (assume that you’re in 33% bracket), versus paying $4800/year for PMI (if it’s 400/month). Number is about the same, no?

[mp7444]

Can you do 15% and paying less PMI?

For not contributing to 401k option, since we can only contribute $16500/year (idk about 403b), you have to wait a few years to collect this 50k(?) to make 20%. But you have to pay tax for this $16500.

Not sure if I do the math right, but you may be paying $5445/year for that 401k tax (assume that you’re in 33% bracket), versus paying $4800/year for PMI (if it’s 400/month). Number is about the same, no?

[mp7444]

Can you do 15% and paying less PMI?

For not contributing to 401k option, since we can only contribute $16500/year (idk about 403b), you have to wait a few years to collect this 50k(?) to make 20%. But you have to pay tax for this $16500.

Not sure if I do the math right, but you may be paying $5445/year for that 401k tax (assume that you’re in 33% bracket), versus paying $4800/year for PMI (if it’s 400/month). Number is about the same, no?

[mp7444]

Can you do 15% and paying less PMI?

For not contributing to 401k option, since we can only contribute $16500/year (idk about 403b), you have to wait a few years to collect this 50k(?) to make 20%. But you have to pay tax for this $16500.

Not sure if I do the math right, but you may be paying $5445/year for that 401k tax (assume that you’re in 33% bracket), versus paying $4800/year for PMI (if it’s 400/month). Number is about the same, no?

[mp7444]

Can you do 15% and paying less PMI?

For not contributing to 401k option, since we can only contribute $16500/year (idk about 403b), you have to wait a few years to collect this 50k(?) to make 20%. But you have to pay tax for this $16500.

Not sure if I do the math right, but you may be paying $5445/year for that 401k tax (assume that you’re in 33% bracket), versus paying $4800/year for PMI (if it’s 400/month). Number is about the same, no?

[scaredyclassic]

Actually forget it. You can’t beat the system.

Maybe the renting thing … Just do that

[scaredyclassic]

Actually forget it. You can’t beat the system.

Maybe the renting thing … Just do that

[scaredyclassic]

Actually forget it. You can’t beat the system.

Maybe the renting thing … Just do that

[scaredyclassic]

Actually forget it. You can’t beat the system.

Maybe the renting thing … Just do that

[Author]

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