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Discussion Starter · #1 ·
Hi Ladies -<br><br>
Well my husband and I have been renting for a year, after the sale of our house about a year ago. We had to bring $10000 to the table when we sold our house, and it made us feel a little nervous about buying again.<br><br>
Fast forward a year later, we are pregnant with baby #2. We're renting a two bedroom home, which is fine, but I'm starting to get the itch to have our own home again.<br><br>
We've been able to save $16000 in the past year, as I have started working again part time, but may not continue once #2 arrives. Haven't decided.<br><br>
Anyway we've found a home that we like. Here's the stats, and let me know what you think:<br><br>
Dh's take home pay: 3235<br>
Monthly mortgage payment: 850 (taxes not included)<br>
Other debt: $175/month student loan payment.<br><br>
What do you think? Do you think this mortgage payment is higher than we should think of paying? Any thoughts would be appreciated. We go back and forth on whether or not we should hold out for a better deal.<br><br>
Thanks!
 

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Well... it depends.<br><br>
How much would taxes be?<br><br>
How much do you spend on grocery's?<br><br>
Gas?<br><br>
Insurance?<br><br>
How much is your usual electric and water bill?<br><br>
Add in the cost of cable/ phone/ internet.<br><br>
How much are you currently paying for rent?<br><br>
Are your cars older? Do they require expensive maintenance?<br><br>
I really don't know your personal finances, so I don't know what I'd do in that situation. Sorry I can't be of more help.
 

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Discussion Starter · #3 ·
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<div>Originally Posted by <strong>grniys</strong> <a href="/community/forum/post/12371159"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Well... it depends.<br><br>
How much would taxes be?<br><br>
How much do you spend on grocery's?<br><br>
Gas?<br><br>
Insurance?<br><br>
How much is your usual electric and water bill?<br><br>
Add in the cost of cable/ phone/ internet.<br><br>
How much are you currently paying for rent?<br><br>
Are your cars older? Do they require expensive maintenance?<br><br>
I really don't know your personal finances, so I don't know what I'd do in that situation. Sorry I can't be of more help.</div>
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Well, I'm not exactly sure what taxes would be, but I'm thinking about $200 - $250/month? That's what it was in our last place.<br><br>
Gas would increase slightly, as my husband walks to work now, and would have to drive 10 min. to get there. We'd probably pay around $100 on gas? Little more?<br><br>
Insurance: about $110<br><br>
We are now paying $650 for rent, and it includes all utilities. Yes, we are in a steal, in my opinion.<br><br>
We pay around $3- 400 for groceries.<br><br>
Phone/Cable/Cell: about $115<br><br>
Our cars are paid off, but in good condition, knock on wood. Haven't had to put a lot of money into them. Thankfully my husband is pretty handy in that area.<br><br>
The heating is the thing I just don't know about: I was told that this house used 8 cords of wood and 300 gallons of propane last year. That's all I know... would have to look into prices on that.
 

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Mortage with taxes and insurance will be a bit over 30% of your take home, a bit high, but not crazy.<br><br>
Find out what property taxes really would be, find out an estimate of what property insurance would be.<br><br>
How much longer until the student loans are paid off?<br><br>
The $16K you saved, what is this money for? Would you have to put all of it down to avoid PMI? Do you have a 6 month emergency fund in place? What about retirement savings? Do you have any now, would you be able to still contribute to both retirement savings as well as sinking fund for car replacement and other moneies that you will need for whatever reason? Do you save for your childrens college expenses or do you want too? Will you be able to save for this as well if you take the new house?<br><br>
Heat - how much is propane? Would you have to pay for the wood or can you harvest it yourself? If you have to buy, what is that cost in your area? 8 cords of wood is a LOT of wood... are you in a really cold/ long winter area? Or is the house poorly insulated?<br><br>
Are you going to be comfortable with having 2 little ones about with a wood buring inside the house? Some are, some are not.<br><br>
What would trash/ water fees cost you if you were now in a house?<br><br>
I think you have a lot of unknowns that you need to research futher before you even think about making a deceison.<br><br>
good luck
 

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I agree with Denvergirlie on needing to find out the unknowns first.<br><br>
Plus, you really should leave ample room in your budget in case gas prices increase next summer so you won't be trying to figure out how to make it to/from work.<br><br>
Another thing to consider is how old is this house? Will you need to put any work into it?<br><br>
You'll also want to have some wiggle room in your budget for unexpected things, and in case property tax increases.
 

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Based on the limited information you posted, this sounds like more of a financial commitment than I would be willing to stretch to do.<br><br>
Also, where are you? In many areas of the country, housing prices have a good bit further to fall to be inline with median income.
 

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Not to throw a wrench in the process but have you been approved for a mortgage yet? My understanding from several people working in that field is that without a HUGE down payment, perfect credit, lengthy job history and a nice income, mortgages (and car loans for that matter) aren't being approved. People who previously would have had no problem qualifying are now being turned down.<br><br>
Until the credit market starts to flow again, buying a house is really difficult even if you can afford it.
 

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<div>Originally Posted by <strong>dogmom327</strong> <a href="/community/forum/post/12371993"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Not to throw a wrench in the process but have you been approved for a mortgage yet? My understanding from several people working in that field is that without a HUGE down payment, perfect credit, lengthy job history and a nice income, mortgages (and car loans for that matter) aren't being approved. People who previously would have had no problem qualifying are now being turned down.<br><br>
Until the credit market starts to flow again, buying a house is really difficult even if you can afford it.</div>
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I was about to post this very thing. There was an article on one of the major network sites that was saying that people with a credit score of 800 and great jobs have been denied car loans because they have no money to put down.<br><br>
That same article said exactly what you have said above. They won't even look at you unless you have 20% down.
 

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<div>Originally Posted by <strong>shepav</strong> <a href="/community/forum/post/12371202"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">The heating is the thing I just don't know about: I was told that this house used 8 cords of wood and 300 gallons of propane last year. That's all I know... would have to look into prices on that.</div>
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We supplement with wood and I hang out on a wood heating forum. The average price for a cord of wood, which is 4' X 8' X 4' or 128 sq. ft of wood, is about $225 nation wide. It will be higher depending on the area and lower. So 8 cords of wood would be $1800.<br><br>
We go through 2 cords of wood a winter, but as I said, we just supplement and during the day half of the house is left unheated. We heat with gas and our bills were around $60/month during the cold winter months. November through March we spent a total of not quite $700 on both gas and wood (for the 5 months).<br><br>
Also something else to think about... if you have to heat with wood, you have to use seasoned wood. We had our wood brought in at the beginning of summer. It might be too late to get well-seasoned wood (because they ALL say "it's seasoned" and, of course it really isn't.)<br><br>
hearth.com is where I hang out to get info on burning wood.
 

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<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
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<div>Originally Posted by <strong>Usually Curious</strong> <a href="/community/forum/post/12372424"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">With that rental payment, especially including utilities, I'd stay put another year. $32,000 will be an even sweeter down payment, don't you think?</div>
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I agree. I would love a 2 bedroom with all utilities for $650!!
 

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Discussion Starter · #12 ·
So true - we really are in a good deal. It's not the most attractive place, but it does the trick. Maybe sitting tight in the best idea... we'll keep weighing the pros and cons.<br><br>
Thanks for the help, Ladies!
 
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