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Went and got approved for up to $350k @ 4.75% (we picked the limit)
We have $17,450 toward down payment; hoping to get seller to pay or split closing costs.
Monthly payment would be about $2,167 according to lender.
That payment would be about 21% of our gross monthly income (housing expense to gross income ratio). Rule of thumb is we should not exceed 26-28% or thereabouts.
Adding this payment to my monthly debt payments would mean a debt to income ratio of 32% (higher than I'd like, but hey, still making car payments).
What you think? Safe enough bet or am I buying too much house? The house is on the high end of the range we have been looking at, but still well within what we can comfortably afford given our expenses (which will also drop by about 50% in a couple years when my truck is paid off - big truck, big payment).
Last edited by DvlsAdvc8; 01-08-2009 at 11:49 AM..
You seem to answer your own question in teh last sentence.Just make sure you can afford the maintenance also and that all cost like insurance;Taxes are included.
According to the information you provided, lenders would approve the loan. Since you dont have 20%, down make sure you do a 1st and 2nd lien to avoid pmi.
Location: Nothing could be finer... I'm in S. Carolina!!
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would you rather have the extra money or the house? not a smart elic question, a real one. i have to ask myself that when looking at houses that make me question whether it's too much house. good luck with whatever you decides. seems like you have thought it through.
would you rather have the extra money or the house? not a smart elic question, a real one. i have to ask myself that when looking at houses that make me question whether it's too much house. good luck with whatever you decides. seems like you have thought it through.
Yeah, I've tried to keep that in mind too. This house would definitely mean we'd have less to be frivolous with. Most of our cash each month is tied up with my truck payment, and daycare payments. We'll have a bunch of freed up cashflow once we get past pre-school in 3-4 years, but I don't really want to wait that long to buy. On the other hand, it does give me a certain "zen" feeling - sort of a "I'd like to see that when I come home"... sort of a "proud" feeling maybe that I don't really get with a lot of the houses we've looked at (not that they're bad, they just didn't have that "pop" that this one does).
I dunno, I guess my only hang-up is concerning our down payment - I'd hoped to have more, but we really haven't been saving for it very long; been pretty transient the last few years and buying a house was not in the plans. Then again, maybe I'm second guessing myself.
I may end up just standing pat and seeing if the gov comes up with any additional homebuying incentives in the stimulus plan they're working out.
Thanks for letting me bounce/reflect off you folks, it's therapeutic.
According to the information you provided, lenders would approve the loan. Since you dont have 20%, down make sure you do a 1st and 2nd lien to avoid pmi.
Are banks still doing 1st and 2nd liens on loans to avoid PMI? Maybe this applies only to loans less than 417K?
I'm in the market for jumbo loans and even if I were to put down 20%, they will not let me have a second lien for an addition 15% to bring me down to the conforming loans? They essentially want me to put 35% downpayment.
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