$1300 a month - is it possible? (balloon payment, condos, 2nd mortgage)

[Mr. Krinkle]

Save for a down payment or do what I did.

I bought a house in the 190K range and my mortgage is $1100 a month. I only put 5% down but have a 80/15/5 loan to avoid PMI and I don't escrow my taxes.

cable/gas/water/electricity/insurance (no HOA in the Heights area) run me around 300-400 a month. I mow my own yard. If it's an old house, you better plan for maintenance expenses. And then save for taxes at the end of the year.

My only complaint is that all of may play/fun money is going towards the house and improvments. I now have to plan on saving money for trips and vacations.

[Poltracker]

Originally Posted by GettaClue

I helped a retiree friend relocate here a few moths ago. She bought a pretty, older home in the Bear Creek area for about $95,000, with 20% down.

Her payments are about $375, insurance is about $100, property taxes are about $175. Her HOA dues are $350/yr. (about $30/mo.).

Electricity bills/receipts from the seller indicate an annual average of $185 a month. (Sorry, I can't recall the natural gas bills.) We found her a a really good, reliable lawn service for $20/wk.

All of that comes to about $965/mo.

She is very close to a post office, 2 grocery stores, doctors' offices, her church, a major regional park, etc. A larger shopping area of big box stores and smaller shops is just 2 miles up the road. There is an elementary school at the center of the neighborhood where she plans to start volunteering.

In short, if you can be flexible as to areas, I think it's quite doable on $1300/mo. and that you can easily do it with a good quality of life.

Other side of town, but this is what I did. Nice older home in nice neighborhood. It can be done.

[jasltx]

You could probably manage that in one of the older First Colony neighborhoods like Chimneystone, Settlers Park or The Highlands. The smaller 2- or 3-BR homes in these neighborhoods frequently sell for around $125,000 and those equipped with up-to-date, high efficiency HVAC units are cheap to heat and cool due to their smaller size. No MUD taxes make the property tax burden in this area low for Houston standards. It's not inside the loop, but the upgrades to Alt-90 and 59 make commuting and city access in general pretty good by suburban standards (especially for those working in the med center or Galleria areas) and the strong local amenities and schools you'll find in this area compensate somewhat from the distance from the city center.

[crone]

In 51 years of marriage and 31 years working for corporate America, we have moved 21 times. We have bought 14 houses and sold 13. You will never find your perfect spot.
When you consider where you are, and where you are not, and the grace of G--, you can be happy where ever you choose. You are in Houston, Texas. You are not in Darfur, Kabul, or Baghdad. If you are like the rest of us you are probably semi healthy and still semi competent.
The real estate market will never be any better than it is now. Prices are pretty low from my perspective. So are interest rates. Things are not gonna get much better. If you intend to have control over your living situation, better take the plunge. The landlord can always raise the rent or rent to trash.
If there are among us any fortune tellers, we would all be rich. Take your best judgement and advice from the pretty smart people on this forum and go for it. If you make a bad decision, you can always sell and move. It is no big deal.

[dadsearchingforahouse]

Originally Posted by CaroleF

I am wondering whether it would be possible to own a house (assuming either no mortgage or a very small one) and spend no more than $1300 a month including electricity, lawn cutting, insurance, tax etc. Or is this a dream like wanting a house in a safe area inside the loop with good schools etc. for under $100,000--that some people on this forum laugh at. What about a condo with an HOA added in

Yup - possible in a low tax area like Stafford (some good subdivisions there - Promenade, Colony Lake Estates etc) - 1.9% Tax, one storey home and $1300 is possible.

[CaroleF]

Originally Posted by crone

In 51 years of marriage and 31 years working for corporate America, we have moved 21 times. We have bought 14 houses and sold 13. You will never find your perfect spot.Take your best judgement and advice from the pretty smart people on this forum and go for it. If you make a bad decision, you can always sell and move. It is no big deal.

Good advice. I am planning on taking it soon.

[HoustonRonnie]

Originally Posted by CaroleF

I am wondering whether it would be possible to own a house (assuming either no mortgage or a very small one) and spend no more than $1300 a month including electricity, lawn cutting, insurance, tax etc. Or is this a dream like wanting a house in a safe area inside the loop with good schools etc. for under $100,000--that some people on this forum laugh at. What about a condo with an HOA added in

Ya, here's how:

$150K home.

5/1 ARM

Mortgage (includes tax escrow and HOA): $640
Elec: $200
Water/Sewage: $90
Gas: $65
Insurance: $97

Total: $1092.

yer killing me, cut your own lawn.

[chris_ut]

She doesn't need a mortgage as she plans to pay cash, the $1300 is just to cover bills. Carole you can do this if you want you just need to be willing to take the plunge. Life is short.

[emirate25]

it can definitely be done...it can be done even under $1000

[Zhang Fei]

Originally Posted by HoustonRonnie

Ya, here's how:

$150K home.

5/1 ARM

Mortgage (includes tax escrow and HOA): $640
Elec: $200
Water/Sewage: $90
Gas: $65
Insurance: $97

Total: $1092.

yer killing me, cut your own lawn.

I'll have to disagree on the ARM. Interest rates are at their lowest in roughly a century.