- This topic has 20 replies, 15 voices, and was last updated 10 years, 2 months ago by Anonymous.
- May 5, 2011 at 5:57 am #203284AnonymousInactive
My husband and I were hoping to buy our first home within a year of marriage, but it’s not looking too promising. Even with it being a sellers market we’re looking at a starter home price of 350K and a Mortgage of 2500 a month. Seems a little steep for us now.
How long did you wait to buy a house?
Happy-2 : It’s for a 3 bedroom house. I live in Mass, that’s the price of houses around here…unfortunately
In mass you will not find a house lower than 300K, 330-360 will get you a basic starter home. 3 bedrooms, 1-2 baths maybe 1500 sq feet
A Large Mammal:
We’re both just starting out in our careers, we’re only 25. We combined make 100K
- May 6, 2011 at 11:51 pm #264743AnonymousInactive
we bought it 1 year before we got married.
- May 8, 2011 at 1:08 pm #267279AnonymousInactive
I purchased my home for me and my children in 2003 and I am hoping to see it 2010 if the market gets in better shape. I will not need so much space next year and want to downsize to a 2-3 bedroom condo or apartment.
Unless you and the hubby have a flock of kids…I think your looking to purchase tooo much house. Be careful!
- May 8, 2011 at 11:22 pm #268558AnonymousInactive
Until we could afford it.
- May 9, 2011 at 1:43 am #269099AnonymousInactive
We could afford to buy after 20 years of marriage. Then I sold it for a whopping $125,000
Now I rent and I want to buy again soon.
- May 10, 2011 at 1:06 am #269792AnonymousInactive
My advice would be to move somewhere where the housing market is less expensive. Where I live you could buy a 6 bedroom house for $300,000 with like 10 acres.
- May 10, 2011 at 2:00 am #269902AnonymousInactive
Definitely wait until you can afford it. If you think the price is too steep, then it is. Don’t worry about buying a ‘home’. Your home is where you and your husband are. Buying a house is a big investment and you are just asking for trouble by buying too soon. Many, many couples fight about money and you shouldn’t invite this into your lives.
It’s better to scrimp now and save the money, than it is to scrimp when you HAVE to.
- May 12, 2011 at 5:06 am #273285AnonymousInactive
I don’t know where you live, but in Arizona it is a buyer’s market and you can pick up a great house for a couple K. Also, interest rates are at their lowest right now. No reason for you to take on a mortgage payment of that proportion. I’ve owned several homes and was also in real estate for 11 years.
- May 16, 2011 at 2:55 am #427184AnonymousInactive
It isn’t likely–that is one of the disadvantages of ARM–you have to think about the future.
- May 16, 2011 at 3:42 am #427185AnonymousInactive
Interest rate has been going up regardless whether you are using libor or other interest benchmarks. At this point even if you refinance you won’t get that good a rate, plus the penalty you will have to pay. Most lenders will allow you to extend your mortgage amortization period and keep your monthly payment the same. Talk to your lender and see if it is an option. My other advise is to make extra payment whenever you can. Good luck.
- May 16, 2011 at 4:01 am #427186AnonymousInactive
As a buyer who will be occupying the home, I would never recommend obtaining anything other than a fxied rate loan for just the reason.
If you have closed over 6 months ago, I would say call the mortgage company who holds your loan. Sometimes your mortgage company will refinance your loan and waive the pre-penalty fee because they are keeping the loan — and will make more money!
REALTOR® & Affordable Housing Specialist
O. 866.894.3601 ~ C. 404.787.8685 ~ F. 404.745.8019
- May 16, 2011 at 4:31 am #427187AnonymousInactive
Sorry to hear your dilemma. Sounds like the LO did not explain the risks associated with this program or perhaps the LO was selling he/she did not know. The Option Arm program is good for some people, that want cash control options. Considering that your in a pre-payment program, you will be unable to touch this loan for as long as it is that period. You might want to refinance your property anyways even with the PP there, especially if the 1 month LIBOR keeps moving north. Take the hit now to save yourself money over the long term. You can also file a complaint that the program was not explained to you correctly, and request a waiver of the PP. However I don’t think that will happen. Look at your options and see if paying the PP now will save you money in the long run. Contact me directly if you have any questions.
- May 16, 2011 at 4:41 am #427188AnonymousInactive
IF you live in MN, WI or CO I may be able to help other wise the guy above hit it on the head.
- May 16, 2011 at 5:13 am #427189AnonymousInactive
You probably cannot refinance without paying the prepayment penalty. You signed a rider agreeing to it. Depending on your equity position, you may be able to roll the prepayment penalty into a new loan. If you can get the rate down significantly, then your payments could be less even with a higher loan amount. That rate seems really high (conforming fixed rates for owner occupied properties are running in the 6.75% – 7% range right now and ARMs typically have a lower start rate… was this 100% financing? Or sub-prime? Without knowing any specifics, I can’t say if the rate you have is reasonable or if you can expect to find a lower rate out there.)
- May 16, 2011 at 10:24 pm #277039AnonymousInactive
5 Years, until we were sure that we could afford all the things that go with owning a home, repairs, taxes, insurance. And that we could afford them in some of the worst case scenarios.
- May 17, 2011 at 12:45 am #277541AnonymousInactive
I’ve been married for 1 1/2 and still dont have a house.
- May 17, 2011 at 2:31 am #278055AnonymousInactive
That’s ridiculously expensive! How many bedrooms do you need? Do you have six kids? I can’t imagine why you would need to spend so much. My wife and I live in a house that’s probably worth less than $200k, including appreciation over 15 years. A real estate agent told us a piece of advice that you would do well to heed: you can’t afford to make your first house your dream house. Buy something you can afford.
- May 17, 2011 at 6:00 am #278555AnonymousInactive
Holy crap! what do you two do?
- May 17, 2011 at 1:29 pm #279517AnonymousInactive
Don’t create financial stress in the marriage. Not sure where you live but $350k for a starter home seems high. Just because a lender says you qualify for the 350–doesn’t mean that you can comfortably afford it. Meaning they don’t take in meals and entertainment fun outside of the mortgage payment. Set up a budget that includes a realistic cost of groceries, fuel, utilities, entertainment, savings of at least 3% of your takehome pay, then you can determine what you can afford. What good is a 350k home if you can enjoy it? Time limits–in today’s economy, I’d take your time.
- May 18, 2011 at 10:21 am #280655AnonymousInactive
We bought ours 5 years before we married. Yeah, backwards I know.
Anyway, you need to wait it out until you can afford it because it doesn’t sound like you can afford the suburb you are wanting.
I am positive you could find a house for less in Mass, I checked, it’s just the location you are wanting to live in and/or find a smaller starter home.
Ours is 1700 sq ft. purchased for 99,000. The town right next to us, (we are in the outskirts of Cincy) cost anywhere from 2-3 times as much for a house with less space. It really is the location you choose to live. I know Mass. cost of living is higher than here and a lot of other places but it is possible to find a home for under 350K . Find a better realtor that will find a nice (not upscale, out of budget, area) that you can afford or wait it out.
Financial strain is the last thing anyone needs right now.
Good Luck and either lower your expectations of what you are going to get and where exactly you live, or wait it out until you can afford 350K.
- June 1, 2011 at 8:44 am #285568AnonymousInactive
We were very lucky. By age 21, after only one year of marriage, my husband and I bought our first home. Nothing fancy, we weren’t trying to buy our dream home on the first go round, just a starter home that had room for us to grow our family. It’s an average, 1500 square foot home in a quiet neighborhood. Only cost us $47,000 12 years ago. But keep in mind we live in a state that doesn’t have outrageous housing or land costs.
There are alot of advantages to renting and I wouldn’t be in a rush to buy your own home until you are not only prepared to make the house payment and insurance, but also be financially prepared for the cost of up keep. Don’t be in a big hurry, you will know when yall are truly financially ready.
- You must be logged in to reply to this topic.