Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We have 3 weeks to go before Our home is ready. We put down a $2,000. deposit. The loan is approved with a 6% interest rate fixed for 30yrs. 20% downpayment.
Right now, today, I am scared to death to go through with this deal. I know no one has a crystal ball about the coming economy but I'm looking to find your opinions.
We have been renting for a year here in Raleigh. We came from NJ where the housing market tumbled so fast it took us 2 years to sell our house. It was the most frustrating, nerve wracking, scariest time for us so far.
Now that this house here is just about ready I'm seriously thinking of cancelling the whole thing and waiting out what happens next with the economy. My husband works in sales and he has seen a significant drop in customers ready to make purchases.
After our downpayment, we will only have 3 months mortgage payments left in our savings account for "cushion".
Anyone going through these feelings? Any advice for me, the worry wart?
You should've gotten an ARM instead...then the gov't would've bailed you out .
Seriously, yes, they are real fears and I think anyone who is paying attention to this financial crisis has them. That said, the housing market in this area is not like NJ in that we did not have the significant run-up in home values as there was up there. So, your home shouldn't lose a significant amount of value. Also, it sounds like you have great financing and a solid down payment...meaning equity if you should need it! I say go for it. The economy will never turn around if we don't continue to buy, invest, etc...
The economy will get a lot worse before it gets better. We are only beginning to see the effects of the recession. But there will be industries and a few regions that do OK. If your husband is in sales, you need to make sure you can pay your mortgage assuming a huge drop in commissions. Otherwise, you'll get sick with stress. There's nothing wrong with renting if you're not sure. 2k is a lot to lose, but a nervous breakdown is even worse.
Nobody knows but you what is appropriate. You need to crunch the numbers and decide for yourself. Good luck.
The economy will never turn around if we don't continue to buy, invest, etc...
Do what's right for you, not for the abstract "economy". Run the numbers and see what's possible. If you can't afford your current house, get out now. If you can, relax and hang in there. Yes, it will be a deep recession, but you'll get through it.
I think the key is how variable your income is. If your husband's income is your sole source of cash, and his commission is a huge part of his total package, be very, very careful. On the other hand, if you can manage with little commission, perhaps just cutting back a bit in other areas for a few years, then go for it.
I can feel your worry! I'm sorry this is causing you so much stress and I'm sure you aren't alone in this worry. It does sound like you have a good deal. Is the mortgage payment a lot more than your rent? If not, you won't really be in a very different circumstance but you'll have the advantage of building equity.
I will say that your exposure to them, $2000 in deposit money that would be forfeited if you back out, is not bad at all. Our builder has over 12k as we prepare to close.
I would echo what JoeChristmas said...don't worry about the media, the news, the "economy" etc - find out what makes sense for you and go with it. It would be a shame to be careless and overextend yourself in buying a house, but it would also be a shame if you walked away from a house you could afford simply do to fear (heightened by the doom and gloom news cycle of late)
its a prefect time to buy a house. but you dont want a nervous break down. you might look back 2 years from now and say shoot I should have gotten that house...its now 10k more and interest rates at 6.5. how secure is your job?
There's always uncertainty involved in decisions like this, whether you realize it or not. Just think, all those people who bought into the housing market when it was at the top because they thought it would keep going up thought they were getting into a sure thing. In hindsight, they knew no more about what would happen down the road than you do now. We could be sitting at the bottom of the bottom, with the market ready to turn and shoot up at any time. People can argue with me if they want, but they're guessing at what will happen next as much as anyone. Even economists don't know what will happen next. Ever.
$2k is not a lot of money in the grand scheme of things. If you would not walk into the builder's trailer and negotiate this deal today, I would not go through with it. But you will still need a place to live regardless of what happens with the economy. Personally, if my mortgage were going to be less than the rent I was paying, or even if it were going to be a little more but for a nicer house, I'd still go through with it. If the hit on your husband's commissions changes the affordability equation drastically, I'd bail.
Thanks for all your opinions. I really do appreciate it. My mortgage payment will be about $140.00 less then the rent I'm paying. Thing is once I take out the downpayment money from the bank then I take out my "reassurance", my safety net, if things go very wrong. Scary times indeed.
To the poster about trying to get the ARM loan. That was funny.. No one has ever bailed me out like so many are being bailed out now. For us it's alway's been sink or swim.
To the other poster about if we were to walk into the builders trailer today to make the deal or not: I don't know, I really don't know. My husband's sales is directly tied to housing as he's been in the furniture industry for over 25 yrs.
UUGGH!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
.
