Advice for First Time Home Buy (Taunton Area) (Norton, Raynham: low income, foreclosure)

[First_Time_Buyer]

I am getting married next summer and I hope to start looking for a house soon thereafter...

I have heard mixed things about the Taunton area. First, I hear Taunton is a bad city to live in (crime, rundown, etc) - then I hear its OK as long as you live in East Taunton near Lakeville. We will be looking in this area (Taunton, Raynham, Norton, etc) so any insight on this area and specifically Taunton (since I see such nicer newer construction for reasonable prices) would be appreciated!

We hope to get a new homer(less than 10 years old) anywhere from 400k-450k.

Thanks again!

[surfingatwork]

Originally Posted by First_Time_Buyer

I am getting married next summer and I hope to start looking for a house soon thereafter...

I have heard mixed things about the Taunton area. First, I hear Taunton is a bad city to live in (crime, rundown, etc) - then I hear its OK as long as you live in East Taunton near Lakeville. We will be looking in this area (Taunton, Raynham, Norton, etc) so any insight on this area and specifically Taunton (since I see such nicer newer construction for reasonable prices) would be appreciated!

We hope to get a new homer(less than 10 years old) anywhere from 400k-450k.

Thanks again!

I live in lakeville (on the east taunton side) and have never heard of any problems (crime wise). there is a section on route 79 that's rundown IMO (near the golf course) but heading towards route 140 there are some very nice homes and it's nice and quiet but you're only a few minutes from the mall, home depot, pier 1, txmaxx and numerous new restaurants that just opened in the past year. there are certain parts of taunton (esp downtown) that is unsafe and does have a fair amount of crime but this is typical with cities.

[Parsec]

First time homebuyer buying a $450k home? That raises some red flags. Be absolutely sure you can afford it before you sign. Do you have $50-100k saved up for a down payment? Assuming a $50k down payment and a 30 yr mortgage loan at 6.75%, the basic affordability guidelines say you should have an income of $131,700. You don't want to overextend yourself in case a financial crisis comes along, i.e. you lose your job. Also if you plan on having kids within a few years after marrying, you should take into consideration the school system. East Taunton would be more desirable in that respect.

[First_Time_Buyer]

Thanks - Income we will be ok but the downpayment will be the X factor depending on how much we will have by the time we want to buy (I have no problem holding off another year to save the appropriate downpayment since I agree with you - I do NOT want to overstrech). What calculator are you using? I have seen so many giving me such different numbers. Thanks for the advice - its appreciated.

[Parsec]

I used excel. I basically used the conventional debt ratios that were in use by mortgage companies before all these exotic loans became available. No more than 28% of your gross monthly income should be spent on your mortgage, property tax, homeowner's insurance, and PMI (if applicable). So I figured out what the mortgage payment would be on a $400k loan (assuming a $50k down payment) at today's average rate of 6.75% and used ballpark figures for the other expenses. Be careful with those "how much house can you afford" calculators. Many are based on faulty assumptions. I remember one of them told me I could afford a $400k house (conservative) or a $500k house (aggressive). When I figured out the monthly payments myself, I would've been spending over 50% of my income on housing payments if I chose the aggressive option!

[Parsec]

I should add, the 28% rule is called your front-end ratio. There's also something called the back-end ratio which is your total debt-to-income ratio. The rule of thumb for that ratio is 36%. So if you don't have any student loans, car payments, or credit card debt then you can actually spend up to 36% of your income on housing payments, but that's really a judgment call you have to make on your own. I personally wouldn't spend that much because it would mean I will have a hard time paying off any future student or car loans. That means I'll have to pay for my masters degree and any future cars w/cash. No thanks!

[Parsec]

I was just thinking, the good thing about having a good income ($150k+) is that you can spend a large percentage of your income on housing and still have as much disposable income as the average guy who's making $80k and rents. You just need some self-control to live below your means if that's the case, but your chances of falling into foreclosure are significantly less than the average person who overextends himself on his mortgage.

[leorah]

I've lived in Taunton for eight years. Prior to that we lived in Berkley for fourteen, and Dighton for twelve. Taunton is one of the most affordable towns in the area and there are areas of nice homes around the city. The downtown is essentially dead. Most commercial activity is clustered around the mall on route 140 and to the east of town on route 44. There are 124 level 2 and 3 sex offenders currently living in Taunton, many of whom live in the downtown area. Much of the drug and alcohol related crime and prostitution is concentrated in the downtown area as well, so it is not a place you'll want to be after dark. The library is underfunded; the carpets are dirty, the walls need painting and the whole facility needs cleaning. A community police station and video cameras have been set up in the building to help monitor the activities of the homeless and drug users, who used to use the bathrooms downstairs near the children's room to wash up and use drugs. Many of the city streets are in disrepair. There are many services available, including senior activities, low income support organizations, a community hospital and mental health outpatient care. The schools are adequate. Taunton has a diverse population with a strong Portuguese-American heritage. In many ways Taunton is a typical New England city, struggling to remain viable after the closure of the mills and other industries that fueled its growth. We've been happy here.

[Parsec]

Originally Posted by leorah

I've lived in Taunton for eight years. Prior to that we lived in Berkley for fourteen, and Dighton for twelve. Taunton is one of the most affordable towns in the area and there are areas of nice homes around the city. The downtown is essentially dead. Most commercial activity is clustered around the mall on route 140 and to the east of town on route 44. There are 124 level 2 and 3 sex offenders currently living in Taunton, many of whom live in the downtown area. Much of the drug and alcohol related crime and prostitution is concentrated in the downtown area as well, so it is not a place you'll want to be after dark. The library is underfunded; the carpets are dirty, the walls need painting and the whole facility needs cleaning. A community police station and video cameras have been set up in the building to help monitor the activities of the homeless and drug users, who used to use the bathrooms downstairs near the children's room to wash up and use drugs. Many of the city streets are in disrepair. There are many services available, including senior activities, low income support organizations, a community hospital and mental health outpatient care. The schools are adequate. Taunton has a diverse population with a strong Portuguese-American heritage. In many ways Taunton is a typical New England city, struggling to remain viable after the closure of the mills and other industries that fueled its growth. We've been happy here.

It's funny -- the bulk of your post describes the negatives of Taunton, but you end the post saying you've been happy there.

[seldomseen]

Originally Posted by Parsec

It's funny -- the bulk of your post describes the negatives of Taunton, but you end the post saying you've been happy there.

Interesting oxymoron eh?