Would you buy a house right now?

[BennyV]

So im faced with buying a house that i have had my eye on for the past 5 years. Im 24, debt free, no wife, no kids. make about 60-65k ish a year in my current job title. i split the bills with a buddy o mine on the rent in which my total bills for the month is a relatively cheap house payment. so my question to you older guys is in our current times of democratically influenced days, is it even feasible to buy a 125k$ house to have to worry weather or not ill have the job/cheap insurance to pay the bills? im mainly concerned with the direction the country is headed and all the bull crap everyone keeps on talking about in washington. id love to head toward owning a place of my own but i save a ton of money each month just by renting and will eventually have cash to pay on a house. sense nobody really knows about health issues, job circumstances, government, certain pandemics, and other variables in life, im just not sure if i really need to pull the trigger on this house. iv been pre approved for a larger amount than the housed appraised for and plan on putting 20% down to avoid pmi. which in that case lessons my payment and also lessons my savings.

i appreciate all feed back and the only reason i post this here is because i know most people on here are alot like me and can add valuable info to my situation from experience and learning the hard way. Thanks in advance guys!

 

[TBItoy]

Do you have any other debt?

Do you want to stay in the area? (Job stability/etc)


If yes to those 2, drop a down payment to avoid PMI, get a good interest rate locked in (you can always refi later to get a better one after you get more credit history), and own a house.

I bought my land/built my shop house when I was 22 (28 now).

 

[BennyV]

I'm debt free at the moment , and yes I'm going to have to stay in north alabama due to my job.

 

[TBItoy]

I'm debt free at the moment , and yes I'm going to have to stay in north alabama due to my job.

Hell, you should be able to get a 15 year and get payments including tax and escrow under $1000/month (should be less).

Make payments + pay any rent money you earn towards the principal. (I wish I would have done that now...)

 

[BennyV]

It was going to be a little over 1k a month on the 15 year including everything. Which sent chills down my spine, cuz I despise paying interest.

 

[muddinmetal]

It was going to be a little over 1k a month on the 15 year including everything. Which sent chills down my spine, cuz I despise paying interest.

In your situation I can see how you could easily pay it off in 4-5 years. You'd almost be dumb not to if you could

 

[TBItoy]

It was going to be a little over 1k a month on the 15 year including everything. Which sent chills down my spine, cuz I despise paying interest.

Paying rent is worse than interest in my eyes...


Your taxes or insurance must be higher, try to get your insurance rate lower ( bundle discount home/auto/life )

 

[BennyV]

I'll take heed to your advice , thanks nick

 

[mdo817]

15 year is not that much higher than a 30, get a renter for one room, put all the rent on the principle and you will own your house free and clear before you know it. Not sure about North Al. but houses in Metro Atlanta have been creeping back up in price a lot the last few years. I should have bought a couple of rentals 5 years ago.


Sent from my iPad using Tapatalk

 

[scrowexj]

I was in your shoes last year 24 single no kids with just a truck Payment. I make about what you make with out over time and was thinks it was gonna suck paying that much for a House Payment. I bought a House and 15 acres and mine was 165k. But I bit the bullet and it's probably the best thing I have ever done. My Payment is right at 1200 a month that's with my insurance and everything. It's blot easier paying for it than I though and not near as tight on money as I thought I would be. I have a separate checking account that has 300 dollars a week automatically put into it from my check and I never notice it. I looked at is as an investment and not throwing money away for rent that you have nothing to show for. If you need a good lady to talk to about it I'll give you her number she is in Hartselle and made everything super easy. Good luck with it though

 

[BennyV]

Yeah I'd be interested in talking to her, anything and anybody I can talk to will help. I try to listen to all the old guys at my place of work and they've shed a lot of light on my situation. But a specailat is always nice.

 

[Mortalis5509]

Re:

With rent you never have anything to show for, but a house you can eventually own it. My wife and I should have ours paid for in 8 years and been her less than 2. I hope to start paying more soon.

 

[John Galbreath Jr.]

If priced at or below the appraisal. You are planning on staying in the area. Job is steady. Go for it. Do it on 15 years. If you decide to upgrade in the future, you will have equity in the asset. I think the economy is doing about all it can for a while, at least two more years, until :afro: gets out of office, or six years if get in. No way I would pay rent. Bought my first house at 21. And now on third house and it is paid for.

 

[The Luke]

My wife and I were in a similar spot about three years ago. 23 and no debt other than student loans. But, we were renting my Dad's busted ass basement apartment for $800 a month. Two out of twelve drains in the house worked when we moved in and just about everywhere leaked. :****:

We ended up picking up a foreclosure for about 30k under appraisal and plan on selling within a couple years. But, this way we aren't throwing away rent and plan on having a substantial down payment on our next place.

 

[Dwalk]

If you want to save yourself +-3 years of interest on a 15 year note, pay 1/2 payment every two weeks....this will save thousands. My wife has been doing this for us and we will only be being paying a little over 12 years on a 15 year mortgage..... also do it while your young!

 

[hokie_yj]

Yes, do it! I bought my shop/house two years ago and it was the best thing I've ever done. Like said above, if there's any way you can afford a 15yr mortgage do it. I got my house for WAY less than what it's worth just because it's not a typical house, and there's not really a market for it except for gearheads like us. (It's a 30x100 pole barn house/shop combo) I paid 10% down and got a 2.875% interest rate. My payment including taxes and insurance is just under $600/month. My lender didn't offer a bi-weekly payment plan, (IMO that's the best way to do it) so i sat up another account and have $365 per check deposited to it. Every month I put everything in that account toward my payment, so every month I pay an extra $150 straight to principal, plus twice a year I pay an additional $365. I just turned 31, and my goal is to own my home before I turn 40

 

[98TJ]

Get a 30 year loan. You can pay all you want extra against the principle and it gives you the flexibility of lower payments if you get laid out, hours cut, wife gets pregnant or whatever.

Pay all you can extra on the loan early. Say your monthly payment is $1,000. Only about $80 of that goes to pay off the principle. $920 goes to taxes, interest, insurance, etc. So, for every extra $80 you pay each month, you knock off another $1,000 payment and a month off the loan. $1,000 = 1 month, $1,080 = 2 months, $1,400 = 6 months.

You can easily bring it down to a 12 or 15 year payoff, but you still have the flexibility of lower payments when the **** hits the fan.

 

[jeepmedic]

no

 

[sexxy]

Talk to your banking people and see what they can do on a 5-10yr mortgage vs 15. Run your numbers and see what you can/cannot afford. I have found that even an extra payment per year will reduce interest payout considerable. A friend of mine said he paid for his house in 5-7ish years and the cost was only $500ish more than a 15yr, but that was 20 or so years ago when rates were higher. Another thing to consider is if you have a significant other that does or does not like the place.

 

[scrowexj]

Pm sent on her info she will do you right