How shall we buy our first house?

[UCguy]

AN, it is true that now seems like a good time because of the rates and you know, kind of got the itch to buy our long term house since over the years we saw many friends of ours buying and raising happy families there….I know, I know – sort of keeping up with Joneses…not a good idea.

I was actually expecting a lot more of conservative replies, and some heated ones bashing me for NOT putting 20% down AND borrowing from 401k…

It is a scenario worth considering – renting is CHEAPER than owning, after all. Saving enough to lower the financing under 417K might save enough in terms of interest – and then guarantee a lower monthly payment, even with higher interest rates. Besides, the prices may be lower then.

What would Piggs think about this case? If the rates are much higher, would you go for a longer (7-10 yr) ARM and then refi when rates drop more? Is that cost effective?

[sdmove]

Looking to buy as well and think that putting down 20% is the way to go. Any chance you can get a loan from parents? I think they can gift you $13k each tax free.

As for rates increasing, I would guess the earliest it would happen is Q4. I also feel that home supply will increase pushing prices down this year. I believe the last Case-Schiller index was down and that was for January. I’ve been watching homes in the lower end ($400s) a lot these past two months do notice that prices are coming down. Once all the sideline buyers are done buying prices should fall further.

My 1 cent or my dream scenario 🙂

Good luck!

[sdmove]

Looking to buy as well and think that putting down 20% is the way to go. Any chance you can get a loan from parents? I think they can gift you $13k each tax free.

As for rates increasing, I would guess the earliest it would happen is Q4. I also feel that home supply will increase pushing prices down this year. I believe the last Case-Schiller index was down and that was for January. I’ve been watching homes in the lower end ($400s) a lot these past two months do notice that prices are coming down. Once all the sideline buyers are done buying prices should fall further.

My 1 cent or my dream scenario 🙂

Good luck!

[sdmove]

Looking to buy as well and think that putting down 20% is the way to go. Any chance you can get a loan from parents? I think they can gift you $13k each tax free.

As for rates increasing, I would guess the earliest it would happen is Q4. I also feel that home supply will increase pushing prices down this year. I believe the last Case-Schiller index was down and that was for January. I’ve been watching homes in the lower end ($400s) a lot these past two months do notice that prices are coming down. Once all the sideline buyers are done buying prices should fall further.

My 1 cent or my dream scenario 🙂

Good luck!

[sdmove]

Looking to buy as well and think that putting down 20% is the way to go. Any chance you can get a loan from parents? I think they can gift you $13k each tax free.

As for rates increasing, I would guess the earliest it would happen is Q4. I also feel that home supply will increase pushing prices down this year. I believe the last Case-Schiller index was down and that was for January. I’ve been watching homes in the lower end ($400s) a lot these past two months do notice that prices are coming down. Once all the sideline buyers are done buying prices should fall further.

My 1 cent or my dream scenario 🙂

Good luck!

[sdmove]

Looking to buy as well and think that putting down 20% is the way to go. Any chance you can get a loan from parents? I think they can gift you $13k each tax free.

As for rates increasing, I would guess the earliest it would happen is Q4. I also feel that home supply will increase pushing prices down this year. I believe the last Case-Schiller index was down and that was for January. I’ve been watching homes in the lower end ($400s) a lot these past two months do notice that prices are coming down. Once all the sideline buyers are done buying prices should fall further.

My 1 cent or my dream scenario 🙂

Good luck!

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[UCguy]

Thanks, sdmove, and good luck to you as well! No, we cannot get even a loan from our parents – in fact, we send every month a few hundred bucks to THEM.

It depends on the area. Some have relative little inventory for the price range we are looking for – and it’s hard to say if the prices are going down, but they are certainly not going up. Recently I’ve noticed more inventory coming on the market, but it increases ever so slowly. Like watching the water boil, LOL.

So I also believe in that the prices will decrease, but the big unknown is the rates. For all I know the feds will keep the rates constant for another year or two because the recovery is weak.

Anybody else thinks that it’s best to wait to save cash for 20% down, rather than borrow from 401K?

[moneymaker]

Usually the most you can get from a 401K is 50k, but you can pay it back over 30 years interest free. I think this year would be a good time to do that before the market double dips. I’ve noticed more houses going up for sale and rent lately. Makes me wonder if people are leaving SD. I think prices will come down and rates will go up, don’t think rates will skyrocket this year as the government seems intent on keeping rates low and banks seem to be doing well. The most important thing is to start looking, educate yourself(like you are doing here), and find “the perfect house”, at least on first impressions as I think houses are a lot like people “most have hidden issues”.

[moneymaker]

Usually the most you can get from a 401K is 50k, but you can pay it back over 30 years interest free. I think this year would be a good time to do that before the market double dips. I’ve noticed more houses going up for sale and rent lately. Makes me wonder if people are leaving SD. I think prices will come down and rates will go up, don’t think rates will skyrocket this year as the government seems intent on keeping rates low and banks seem to be doing well. The most important thing is to start looking, educate yourself(like you are doing here), and find “the perfect house”, at least on first impressions as I think houses are a lot like people “most have hidden issues”.

[moneymaker]

Usually the most you can get from a 401K is 50k, but you can pay it back over 30 years interest free. I think this year would be a good time to do that before the market double dips. I’ve noticed more houses going up for sale and rent lately. Makes me wonder if people are leaving SD. I think prices will come down and rates will go up, don’t think rates will skyrocket this year as the government seems intent on keeping rates low and banks seem to be doing well. The most important thing is to start looking, educate yourself(like you are doing here), and find “the perfect house”, at least on first impressions as I think houses are a lot like people “most have hidden issues”.

[moneymaker]

Usually the most you can get from a 401K is 50k, but you can pay it back over 30 years interest free. I think this year would be a good time to do that before the market double dips. I’ve noticed more houses going up for sale and rent lately. Makes me wonder if people are leaving SD. I think prices will come down and rates will go up, don’t think rates will skyrocket this year as the government seems intent on keeping rates low and banks seem to be doing well. The most important thing is to start looking, educate yourself(like you are doing here), and find “the perfect house”, at least on first impressions as I think houses are a lot like people “most have hidden issues”.

[Author]

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