- This topic has 30 replies, 4 voices, and was last updated 16 years, 2 months ago by
SD Realtor.
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February 23, 2008 at 10:37 PM #11912February 23, 2008 at 11:07 PM #158732
an
ParticipantThe first question I have is, did you read the primer articles from Rich and the many threads we have so far about how the market is declining? If yes and you still want to buy, even with the possibility of going negative then lets talk about the actual numbers.
A townhouse usually have HOA. did you calculate that into your monthly payment? Buying a house for $500-520k would yield between 2700-2850/month with 70k down. Also, since that’s not 20% down, it’s definitely harder to get a loan. I know both E-Loan and E-trade don’t have jumbo loans w/ less than 20% down anymore. If you do find a jumbo loan w/ less than 20% down, you probably will be paying at least 6.5% if your credit is perfect.
We haven’t even count in taxes yet. Which should be around $400/month. If $2600/month will yield you $0 in savings, then you can’t really afford a $500k house. We also haven’t talk about maintenance and emergency fund either. What if your car break down and needs repair. If I were you, I’d rent.
February 23, 2008 at 11:07 PM #159023ParticipantThe first question I have is, did you read the primer articles from Rich and the many threads we have so far about how the market is declining? If yes and you still want to buy, even with the possibility of going negative then lets talk about the actual numbers.
A townhouse usually have HOA. did you calculate that into your monthly payment? Buying a house for $500-520k would yield between 2700-2850/month with 70k down. Also, since that’s not 20% down, it’s definitely harder to get a loan. I know both E-Loan and E-trade don’t have jumbo loans w/ less than 20% down anymore. If you do find a jumbo loan w/ less than 20% down, you probably will be paying at least 6.5% if your credit is perfect.
We haven’t even count in taxes yet. Which should be around $400/month. If $2600/month will yield you $0 in savings, then you can’t really afford a $500k house. We also haven’t talk about maintenance and emergency fund either. What if your car break down and needs repair. If I were you, I’d rent.
February 23, 2008 at 11:07 PM #159036ParticipantThe first question I have is, did you read the primer articles from Rich and the many threads we have so far about how the market is declining? If yes and you still want to buy, even with the possibility of going negative then lets talk about the actual numbers.
A townhouse usually have HOA. did you calculate that into your monthly payment? Buying a house for $500-520k would yield between 2700-2850/month with 70k down. Also, since that’s not 20% down, it’s definitely harder to get a loan. I know both E-Loan and E-trade don’t have jumbo loans w/ less than 20% down anymore. If you do find a jumbo loan w/ less than 20% down, you probably will be paying at least 6.5% if your credit is perfect.
We haven’t even count in taxes yet. Which should be around $400/month. If $2600/month will yield you $0 in savings, then you can’t really afford a $500k house. We also haven’t talk about maintenance and emergency fund either. What if your car break down and needs repair. If I were you, I’d rent.
February 23, 2008 at 11:07 PM #159043ParticipantThe first question I have is, did you read the primer articles from Rich and the many threads we have so far about how the market is declining? If yes and you still want to buy, even with the possibility of going negative then lets talk about the actual numbers.
A townhouse usually have HOA. did you calculate that into your monthly payment? Buying a house for $500-520k would yield between 2700-2850/month with 70k down. Also, since that’s not 20% down, it’s definitely harder to get a loan. I know both E-Loan and E-trade don’t have jumbo loans w/ less than 20% down anymore. If you do find a jumbo loan w/ less than 20% down, you probably will be paying at least 6.5% if your credit is perfect.
We haven’t even count in taxes yet. Which should be around $400/month. If $2600/month will yield you $0 in savings, then you can’t really afford a $500k house. We also haven’t talk about maintenance and emergency fund either. What if your car break down and needs repair. If I were you, I’d rent.
February 23, 2008 at 11:07 PM #159118ParticipantThe first question I have is, did you read the primer articles from Rich and the many threads we have so far about how the market is declining? If yes and you still want to buy, even with the possibility of going negative then lets talk about the actual numbers.
A townhouse usually have HOA. did you calculate that into your monthly payment? Buying a house for $500-520k would yield between 2700-2850/month with 70k down. Also, since that’s not 20% down, it’s definitely harder to get a loan. I know both E-Loan and E-trade don’t have jumbo loans w/ less than 20% down anymore. If you do find a jumbo loan w/ less than 20% down, you probably will be paying at least 6.5% if your credit is perfect.
We haven’t even count in taxes yet. Which should be around $400/month. If $2600/month will yield you $0 in savings, then you can’t really afford a $500k house. We also haven’t talk about maintenance and emergency fund either. What if your car break down and needs repair. If I were you, I’d rent.
February 24, 2008 at 9:52 AM #158902SD Realtor
ParticipantI wouldl continue to rent. The main driver on that decision is the type of property you are looking for. Townhomes in Poway/PQ/RB etc still have the propensity to take a big drop. The same is true for the single family house type you are looking for. If you sign another lease for a year or two you will do pretty darn well in the future. My caviot is this…
SAVE MONEY.
If indeed the interest rate environment is radically different in 2009-2010 then you WILL need downpayment money no matter how far prices go down. This is something frequently not discussed here. Especially if lending standards are going to change which I really think/hope/believe they will.
February 24, 2008 at 9:52 AM #159194ParticipantI wouldl continue to rent. The main driver on that decision is the type of property you are looking for. Townhomes in Poway/PQ/RB etc still have the propensity to take a big drop. The same is true for the single family house type you are looking for. If you sign another lease for a year or two you will do pretty darn well in the future. My caviot is this…
SAVE MONEY.
If indeed the interest rate environment is radically different in 2009-2010 then you WILL need downpayment money no matter how far prices go down. This is something frequently not discussed here. Especially if lending standards are going to change which I really think/hope/believe they will.
February 24, 2008 at 9:52 AM #159206ParticipantI wouldl continue to rent. The main driver on that decision is the type of property you are looking for. Townhomes in Poway/PQ/RB etc still have the propensity to take a big drop. The same is true for the single family house type you are looking for. If you sign another lease for a year or two you will do pretty darn well in the future. My caviot is this…
SAVE MONEY.
If indeed the interest rate environment is radically different in 2009-2010 then you WILL need downpayment money no matter how far prices go down. This is something frequently not discussed here. Especially if lending standards are going to change which I really think/hope/believe they will.
February 24, 2008 at 9:52 AM #159212ParticipantI wouldl continue to rent. The main driver on that decision is the type of property you are looking for. Townhomes in Poway/PQ/RB etc still have the propensity to take a big drop. The same is true for the single family house type you are looking for. If you sign another lease for a year or two you will do pretty darn well in the future. My caviot is this…
SAVE MONEY.
If indeed the interest rate environment is radically different in 2009-2010 then you WILL need downpayment money no matter how far prices go down. This is something frequently not discussed here. Especially if lending standards are going to change which I really think/hope/believe they will.
February 24, 2008 at 9:52 AM #159289ParticipantI wouldl continue to rent. The main driver on that decision is the type of property you are looking for. Townhomes in Poway/PQ/RB etc still have the propensity to take a big drop. The same is true for the single family house type you are looking for. If you sign another lease for a year or two you will do pretty darn well in the future. My caviot is this…
SAVE MONEY.
If indeed the interest rate environment is radically different in 2009-2010 then you WILL need downpayment money no matter how far prices go down. This is something frequently not discussed here. Especially if lending standards are going to change which I really think/hope/believe they will.
February 24, 2008 at 10:38 AM #158936Deal Hunter
ParticipantIt’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.
Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).
I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.
It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….
SAVE MONEY!
February 24, 2008 at 10:38 AM #159228ParticipantIt’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.
Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).
I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.
It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….
SAVE MONEY!
February 24, 2008 at 10:38 AM #159241ParticipantIt’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.
Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).
I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.
It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….
SAVE MONEY!
February 24, 2008 at 10:38 AM #159247ParticipantIt’s a buyer’s market, so I would buy. However, don’t buy the biggest house you can afford. Find the most modest house you can stand, and buy the house JUST BELOW that standard! Work it out so that you have the ability to set aside 6months to 1 year of emergency cash.
Put as much down as you can and DON’T FORGET you have mortgage interest deduction with ownership that you don’t have with renting. Take the total of your potential mortgage interest deduction and divide by 3200. The result is the number you can add to your W4 exclusions to pull more money out of your paycheck each week. (Note: Your refund at the end of the year will be smaller).
I understand that school district is important, but so is your financial well-being. A reasonable purchase in those areas may still be putting you too much at risk with no ability to save. Perhaps a unsurpassable deal in a different area would give you the “cushion” you need and still allow you to own a home.
It’s temporary until you and the U.S. economy recovers better footing. You just have to put more effort into supporting your kids through a couple of years of a less than ideal school district. But I echo the post before me….
SAVE MONEY!
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