[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?

[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?

[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?

[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?

[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?

[UCguy]

[quote=AN]I might be on the conservative side but if I’m in your shoes, I’d buy a cheaper house (~$350k) that would be at or close to cash flow neutral. If I have $52k to down right now, downing 20% for a $350k would mean you’d have to borrow ~$20k from your 401k. It’ll be much easier to pay off $20k than $50k. In the mean time your payment will be fixed at a relatively low number. With your income, I’m sure you can save another $100k easily over the follow 5 years. In 5 years, you can always move up and either sell your current place or rent it out if the price drops too much. Also, with a $350k house, it’ll give you breather room if one of you lose your job.

I tend to try and plan for worse case scenario and hope for the best. Although the above is not worse case, it’s still very conservative. With your hind of HH income, it would be too long before you save enough to buy a bigger house.[/quote]

Thanks, AN, I always appreciate your practical, well-informed comments.

The only problem I see with your suggestion is finding that place that’s big enough, good enough that is rent neutral. My bet is that we won’t be able to sell it at original price in 5 years and don’t think we want to play landlords. But, yes, we could save 100k in 5 years for anothe downpayment.

Actually even if we could find something like that – if it’s not in the area we want to eventually buy we wouldn’t do it – we don’t want to move the kids again in 5 years when they are in middle and high school. By that time, to buy a bigger house it would be almost pointless. Another 5 more years and the kids will be (hopefully) out of the house….

But, thinking conservatively, AN, what do you think about continuing to rent for 3-4 years until we have 20% down – and buying only in PQ so the kids can continue in the same schools? Wouldn’t that be just as conservative?

[UCguy]

[quote=AN]I might be on the conservative side but if I’m in your shoes, I’d buy a cheaper house (~$350k) that would be at or close to cash flow neutral. If I have $52k to down right now, downing 20% for a $350k would mean you’d have to borrow ~$20k from your 401k. It’ll be much easier to pay off $20k than $50k. In the mean time your payment will be fixed at a relatively low number. With your income, I’m sure you can save another $100k easily over the follow 5 years. In 5 years, you can always move up and either sell your current place or rent it out if the price drops too much. Also, with a $350k house, it’ll give you breather room if one of you lose your job.

I tend to try and plan for worse case scenario and hope for the best. Although the above is not worse case, it’s still very conservative. With your hind of HH income, it would be too long before you save enough to buy a bigger house.[/quote]

Thanks, AN, I always appreciate your practical, well-informed comments.

The only problem I see with your suggestion is finding that place that’s big enough, good enough that is rent neutral. My bet is that we won’t be able to sell it at original price in 5 years and don’t think we want to play landlords. But, yes, we could save 100k in 5 years for anothe downpayment.

Actually even if we could find something like that – if it’s not in the area we want to eventually buy we wouldn’t do it – we don’t want to move the kids again in 5 years when they are in middle and high school. By that time, to buy a bigger house it would be almost pointless. Another 5 more years and the kids will be (hopefully) out of the house….

But, thinking conservatively, AN, what do you think about continuing to rent for 3-4 years until we have 20% down – and buying only in PQ so the kids can continue in the same schools? Wouldn’t that be just as conservative?

[UCguy]

[quote=AN]I might be on the conservative side but if I’m in your shoes, I’d buy a cheaper house (~$350k) that would be at or close to cash flow neutral. If I have $52k to down right now, downing 20% for a $350k would mean you’d have to borrow ~$20k from your 401k. It’ll be much easier to pay off $20k than $50k. In the mean time your payment will be fixed at a relatively low number. With your income, I’m sure you can save another $100k easily over the follow 5 years. In 5 years, you can always move up and either sell your current place or rent it out if the price drops too much. Also, with a $350k house, it’ll give you breather room if one of you lose your job.

I tend to try and plan for worse case scenario and hope for the best. Although the above is not worse case, it’s still very conservative. With your hind of HH income, it would be too long before you save enough to buy a bigger house.[/quote]

Thanks, AN, I always appreciate your practical, well-informed comments.

The only problem I see with your suggestion is finding that place that’s big enough, good enough that is rent neutral. My bet is that we won’t be able to sell it at original price in 5 years and don’t think we want to play landlords. But, yes, we could save 100k in 5 years for anothe downpayment.

Actually even if we could find something like that – if it’s not in the area we want to eventually buy we wouldn’t do it – we don’t want to move the kids again in 5 years when they are in middle and high school. By that time, to buy a bigger house it would be almost pointless. Another 5 more years and the kids will be (hopefully) out of the house….

But, thinking conservatively, AN, what do you think about continuing to rent for 3-4 years until we have 20% down – and buying only in PQ so the kids can continue in the same schools? Wouldn’t that be just as conservative?

[UCguy]

[quote=AN]I might be on the conservative side but if I’m in your shoes, I’d buy a cheaper house (~$350k) that would be at or close to cash flow neutral. If I have $52k to down right now, downing 20% for a $350k would mean you’d have to borrow ~$20k from your 401k. It’ll be much easier to pay off $20k than $50k. In the mean time your payment will be fixed at a relatively low number. With your income, I’m sure you can save another $100k easily over the follow 5 years. In 5 years, you can always move up and either sell your current place or rent it out if the price drops too much. Also, with a $350k house, it’ll give you breather room if one of you lose your job.

I tend to try and plan for worse case scenario and hope for the best. Although the above is not worse case, it’s still very conservative. With your hind of HH income, it would be too long before you save enough to buy a bigger house.[/quote]

Thanks, AN, I always appreciate your practical, well-informed comments.

The only problem I see with your suggestion is finding that place that’s big enough, good enough that is rent neutral. My bet is that we won’t be able to sell it at original price in 5 years and don’t think we want to play landlords. But, yes, we could save 100k in 5 years for anothe downpayment.

Actually even if we could find something like that – if it’s not in the area we want to eventually buy we wouldn’t do it – we don’t want to move the kids again in 5 years when they are in middle and high school. By that time, to buy a bigger house it would be almost pointless. Another 5 more years and the kids will be (hopefully) out of the house….

But, thinking conservatively, AN, what do you think about continuing to rent for 3-4 years until we have 20% down – and buying only in PQ so the kids can continue in the same schools? Wouldn’t that be just as conservative?

[UCguy]

[quote=AN]I might be on the conservative side but if I’m in your shoes, I’d buy a cheaper house (~$350k) that would be at or close to cash flow neutral. If I have $52k to down right now, downing 20% for a $350k would mean you’d have to borrow ~$20k from your 401k. It’ll be much easier to pay off $20k than $50k. In the mean time your payment will be fixed at a relatively low number. With your income, I’m sure you can save another $100k easily over the follow 5 years. In 5 years, you can always move up and either sell your current place or rent it out if the price drops too much. Also, with a $350k house, it’ll give you breather room if one of you lose your job.

I tend to try and plan for worse case scenario and hope for the best. Although the above is not worse case, it’s still very conservative. With your hind of HH income, it would be too long before you save enough to buy a bigger house.[/quote]

Thanks, AN, I always appreciate your practical, well-informed comments.

The only problem I see with your suggestion is finding that place that’s big enough, good enough that is rent neutral. My bet is that we won’t be able to sell it at original price in 5 years and don’t think we want to play landlords. But, yes, we could save 100k in 5 years for anothe downpayment.

Actually even if we could find something like that – if it’s not in the area we want to eventually buy we wouldn’t do it – we don’t want to move the kids again in 5 years when they are in middle and high school. By that time, to buy a bigger house it would be almost pointless. Another 5 more years and the kids will be (hopefully) out of the house….

But, thinking conservatively, AN, what do you think about continuing to rent for 3-4 years until we have 20% down – and buying only in PQ so the kids can continue in the same schools? Wouldn’t that be just as conservative?

[UCguy]

[quote=jstoesz] Sorry, I didn’t mean to upset you. I understand your situation, and my comments are coming from my own personally bitterness with SD. Hell, you make 3 times the median, and you are looking at how you can scrape together enough for a far flung cookie cutter home (there is something severely wrong still, even in light of “historic” affordability). I should not have said “demand more.” That was probably not exactly what I meant…how’s “going galt” on the home market. I was also not disparaging your income, I find 180k for a household to be a good chunk of change (nationally I think that is the 95th percentile), and I commend your ability to pull that together. I also find your stockpile of savings/retirement to be pretty decent by the average American’s standards. I bet 95% of your fellow citizens would trade with you in a New York Minute.

You were very clear about wanting to buy a home, but I figured what was the harm in throwing an oddball idea out. I can completely understand that feeling. I was not intending my comments to be antagonizing, in any way. My wife and I have talked about doing this on numerous occasions. And we often think we would rather rent a crappy home and own a sweet cabin. Granted the rubber has not yet met the road on this decision yet. For the record when I lived in SD, I lived on a boat. I have lived in my car, on a ranch, in a tent…and a couple houses along the way. So I am not a straightforward practical guy, and I do not want to be one.[/quote]

No problem, man! We are good. No need to apologize. And thanks, I appreciate your comments and now that you made it clear what you meant…I wish I could do something like that and I envy the guys that did. Must have been really fun. I am more of a conventional guy. I sure think that kind of life would be 100 times more interesting…I share your bitterness and disappointment with the house market in SD. I wish I could say something like: – F*** this house market, I am not gonna buy in the debt slavery sh–t. If I wouldn’t have the (extended) family responsibility and I wouldn’t pay so much in rent I’d consider seriously buying a nice, smaller rental somewhere for cheap, and keep renting. It wasn’t a bad idea at all. I’ll sleep on it. 🙂

I agree the market is overpriced still. Which is why, I was thinking that maybe, if I wait a few years until I save the 20% down, the house market prices will be where I think should be. Which for RB, PQ, and such currently at 500K would be 20-30% down at least. But who knows if that will happen, and when?

[UCguy]

[quote=jstoesz] Sorry, I didn’t mean to upset you. I understand your situation, and my comments are coming from my own personally bitterness with SD. Hell, you make 3 times the median, and you are looking at how you can scrape together enough for a far flung cookie cutter home (there is something severely wrong still, even in light of “historic” affordability). I should not have said “demand more.” That was probably not exactly what I meant…how’s “going galt” on the home market. I was also not disparaging your income, I find 180k for a household to be a good chunk of change (nationally I think that is the 95th percentile), and I commend your ability to pull that together. I also find your stockpile of savings/retirement to be pretty decent by the average American’s standards. I bet 95% of your fellow citizens would trade with you in a New York Minute.

You were very clear about wanting to buy a home, but I figured what was the harm in throwing an oddball idea out. I can completely understand that feeling. I was not intending my comments to be antagonizing, in any way. My wife and I have talked about doing this on numerous occasions. And we often think we would rather rent a crappy home and own a sweet cabin. Granted the rubber has not yet met the road on this decision yet. For the record when I lived in SD, I lived on a boat. I have lived in my car, on a ranch, in a tent…and a couple houses along the way. So I am not a straightforward practical guy, and I do not want to be one.[/quote]

No problem, man! We are good. No need to apologize. And thanks, I appreciate your comments and now that you made it clear what you meant…I wish I could do something like that and I envy the guys that did. Must have been really fun. I am more of a conventional guy. I sure think that kind of life would be 100 times more interesting…I share your bitterness and disappointment with the house market in SD. I wish I could say something like: – F*** this house market, I am not gonna buy in the debt slavery sh–t. If I wouldn’t have the (extended) family responsibility and I wouldn’t pay so much in rent I’d consider seriously buying a nice, smaller rental somewhere for cheap, and keep renting. It wasn’t a bad idea at all. I’ll sleep on it. 🙂

I agree the market is overpriced still. Which is why, I was thinking that maybe, if I wait a few years until I save the 20% down, the house market prices will be where I think should be. Which for RB, PQ, and such currently at 500K would be 20-30% down at least. But who knows if that will happen, and when?

[UCguy]

[quote=jstoesz] Sorry, I didn’t mean to upset you. I understand your situation, and my comments are coming from my own personally bitterness with SD. Hell, you make 3 times the median, and you are looking at how you can scrape together enough for a far flung cookie cutter home (there is something severely wrong still, even in light of “historic” affordability). I should not have said “demand more.” That was probably not exactly what I meant…how’s “going galt” on the home market. I was also not disparaging your income, I find 180k for a household to be a good chunk of change (nationally I think that is the 95th percentile), and I commend your ability to pull that together. I also find your stockpile of savings/retirement to be pretty decent by the average American’s standards. I bet 95% of your fellow citizens would trade with you in a New York Minute.

You were very clear about wanting to buy a home, but I figured what was the harm in throwing an oddball idea out. I can completely understand that feeling. I was not intending my comments to be antagonizing, in any way. My wife and I have talked about doing this on numerous occasions. And we often think we would rather rent a crappy home and own a sweet cabin. Granted the rubber has not yet met the road on this decision yet. For the record when I lived in SD, I lived on a boat. I have lived in my car, on a ranch, in a tent…and a couple houses along the way. So I am not a straightforward practical guy, and I do not want to be one.[/quote]

No problem, man! We are good. No need to apologize. And thanks, I appreciate your comments and now that you made it clear what you meant…I wish I could do something like that and I envy the guys that did. Must have been really fun. I am more of a conventional guy. I sure think that kind of life would be 100 times more interesting…I share your bitterness and disappointment with the house market in SD. I wish I could say something like: – F*** this house market, I am not gonna buy in the debt slavery sh–t. If I wouldn’t have the (extended) family responsibility and I wouldn’t pay so much in rent I’d consider seriously buying a nice, smaller rental somewhere for cheap, and keep renting. It wasn’t a bad idea at all. I’ll sleep on it. 🙂

I agree the market is overpriced still. Which is why, I was thinking that maybe, if I wait a few years until I save the 20% down, the house market prices will be where I think should be. Which for RB, PQ, and such currently at 500K would be 20-30% down at least. But who knows if that will happen, and when?

[UCguy]

[quote=jstoesz] Sorry, I didn’t mean to upset you. I understand your situation, and my comments are coming from my own personally bitterness with SD. Hell, you make 3 times the median, and you are looking at how you can scrape together enough for a far flung cookie cutter home (there is something severely wrong still, even in light of “historic” affordability). I should not have said “demand more.” That was probably not exactly what I meant…how’s “going galt” on the home market. I was also not disparaging your income, I find 180k for a household to be a good chunk of change (nationally I think that is the 95th percentile), and I commend your ability to pull that together. I also find your stockpile of savings/retirement to be pretty decent by the average American’s standards. I bet 95% of your fellow citizens would trade with you in a New York Minute.

You were very clear about wanting to buy a home, but I figured what was the harm in throwing an oddball idea out. I can completely understand that feeling. I was not intending my comments to be antagonizing, in any way. My wife and I have talked about doing this on numerous occasions. And we often think we would rather rent a crappy home and own a sweet cabin. Granted the rubber has not yet met the road on this decision yet. For the record when I lived in SD, I lived on a boat. I have lived in my car, on a ranch, in a tent…and a couple houses along the way. So I am not a straightforward practical guy, and I do not want to be one.[/quote]

No problem, man! We are good. No need to apologize. And thanks, I appreciate your comments and now that you made it clear what you meant…I wish I could do something like that and I envy the guys that did. Must have been really fun. I am more of a conventional guy. I sure think that kind of life would be 100 times more interesting…I share your bitterness and disappointment with the house market in SD. I wish I could say something like: – F*** this house market, I am not gonna buy in the debt slavery sh–t. If I wouldn’t have the (extended) family responsibility and I wouldn’t pay so much in rent I’d consider seriously buying a nice, smaller rental somewhere for cheap, and keep renting. It wasn’t a bad idea at all. I’ll sleep on it. 🙂

I agree the market is overpriced still. Which is why, I was thinking that maybe, if I wait a few years until I save the 20% down, the house market prices will be where I think should be. Which for RB, PQ, and such currently at 500K would be 20-30% down at least. But who knows if that will happen, and when?

[UCguy]

[quote=jstoesz] Sorry, I didn’t mean to upset you. I understand your situation, and my comments are coming from my own personally bitterness with SD. Hell, you make 3 times the median, and you are looking at how you can scrape together enough for a far flung cookie cutter home (there is something severely wrong still, even in light of “historic” affordability). I should not have said “demand more.” That was probably not exactly what I meant…how’s “going galt” on the home market. I was also not disparaging your income, I find 180k for a household to be a good chunk of change (nationally I think that is the 95th percentile), and I commend your ability to pull that together. I also find your stockpile of savings/retirement to be pretty decent by the average American’s standards. I bet 95% of your fellow citizens would trade with you in a New York Minute.

You were very clear about wanting to buy a home, but I figured what was the harm in throwing an oddball idea out. I can completely understand that feeling. I was not intending my comments to be antagonizing, in any way. My wife and I have talked about doing this on numerous occasions. And we often think we would rather rent a crappy home and own a sweet cabin. Granted the rubber has not yet met the road on this decision yet. For the record when I lived in SD, I lived on a boat. I have lived in my car, on a ranch, in a tent…and a couple houses along the way. So I am not a straightforward practical guy, and I do not want to be one.[/quote]

No problem, man! We are good. No need to apologize. And thanks, I appreciate your comments and now that you made it clear what you meant…I wish I could do something like that and I envy the guys that did. Must have been really fun. I am more of a conventional guy. I sure think that kind of life would be 100 times more interesting…I share your bitterness and disappointment with the house market in SD. I wish I could say something like: – F*** this house market, I am not gonna buy in the debt slavery sh–t. If I wouldn’t have the (extended) family responsibility and I wouldn’t pay so much in rent I’d consider seriously buying a nice, smaller rental somewhere for cheap, and keep renting. It wasn’t a bad idea at all. I’ll sleep on it. 🙂

I agree the market is overpriced still. Which is why, I was thinking that maybe, if I wait a few years until I save the 20% down, the house market prices will be where I think should be. Which for RB, PQ, and such currently at 500K would be 20-30% down at least. But who knows if that will happen, and when?

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