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Old 12-16-2017, 09:36 PM
 
Location: Fullerton, CA
82 posts, read 90,575 times
Reputation: 53

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Currently my wife and I live in Orange County, CA, as you know housing costs are are insane to say the least. (Originally from Chicago). Currently we have 45k saved up, plus I am able to receive a 10k loan from my job at 0 interest to go towards the house. Currently our mortgage will be around 3200-3400 a month. That alone will have us saving around $150 a month which I feel anxious about. We are thinking of using 10k of that to pay off my car which will give us an extra $313 a month. Would you pay off the car? Also after the House is bought we plan to keep atleast 10k in the bank for emergency and build upon that. Thanks!
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Old 12-16-2017, 10:02 PM
 
Location: Riverside Ca
22,146 posts, read 33,227,113 times
Reputation: 35433
Quote:
Originally Posted by djg06 View Post
Currently my wife and I live in Orange County, CA, as you know housing costs are are insane to say the least. (Originally from Chicago). Currently we have 45k saved up, plus I am able to receive a 10k loan from my job at 0 interest to go towards the house. Currently our mortgage will be around 3200-3400 a month. That alone will have us saving around $150 a month which I feel anxious about. We are thinking of using 10k of that to pay off my car which will give us an extra $313 a month. Would you pay off the car? Also after the House is bought we plan to keep atleast 10k in the bank for emergency and build upon that. Thanks!

How exactly is the mortgage going to save you $150 a month.

Your post doesn’t give any detail on your finances.

How much is your rent currently
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Old 12-16-2017, 10:20 PM
 
8,742 posts, read 12,861,751 times
Reputation: 10524
It seems like your question is about which way can get you best qualified for a maximum loan.

Will your company loan show up on your credit report? For sure the car loan will. What the mortgage companies look for is your total debt divided by your income. I am not sure what that maximum ratio is. If you have good FICO score, that ratio could be higher than 50%.

Again if you have a good FICO score, you can pay as little as 3.5% down payment. The bad part is, if you pay less than 20% down you will need to pay MI (mortgage insurance). This could add another $200 - $400 per month to your mortgage payment depending on your loan amount.
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Old 12-16-2017, 11:24 PM
 
Location: Fullerton, CA
82 posts, read 90,575 times
Reputation: 53
I wound only be saving $150 a month after a mortgage of $3400.

We pay $2600 for rent currently

We are preappeoved for $550k but are looking around under $500k.

Both of our fico scores are high 700s.

Sorry about not explaining
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Old 12-17-2017, 12:42 PM
 
4,481 posts, read 2,262,884 times
Reputation: 4092
This sounds like an FHA loan? I don't know if you are aware but the MIP or "PMI" on an FHA is now for the life of the loan. Only way to get out of it is to refi to a conventional loan.
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Old 12-17-2017, 01:48 PM
 
Location: Fullerton, CA
82 posts, read 90,575 times
Reputation: 53
I didn’t know that Max! Thank you for that
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Old 12-17-2017, 05:45 PM
 
18,172 posts, read 16,249,400 times
Reputation: 9325
Quote:
Originally Posted by djg06 View Post
I wound only be saving $150 a month after a mortgage of $3400.

We pay $2600 for rent currently

We are preappeoved for $550k but are looking around under $500k.

Both of our fico scores are high 700s.

Sorry about not explaining
That is not a lot for OC, so where you will find a house may not be close to work and not in an area you want to live.
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Old 12-17-2017, 06:12 PM
 
Location: Fullerton, CA
82 posts, read 90,575 times
Reputation: 53
Thanks expat, ofcourse just makes us nervous because the price but I figured it’s pretty standard here, our friend that just bought one is paying 3100 a month. I just feel like prices are rising so fast it’s not worth waiting
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Old 12-17-2017, 06:16 PM
 
5,381 posts, read 8,636,228 times
Reputation: 4550
Quote:
Originally Posted by djg06 View Post
I wound only be saving $150 a month after a mortgage of $3400.

We pay $2600 for rent currently

We are preappeoved for $550k but are looking around under $500k.

Both of our fico scores are high 700s.

Sorry about not explaining
I doubt that you will be able to find a SFR at your price point in OC. Have you considered getting a townhouse/condo, instead? Of course, you would have to add HOA fees if you go that route. Also, as you know, you will have to add property taxes and insurance to your budget with either a SFR or a condo.

BTW, Redfin.com is a good source for seeing what's available in the housing market.
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Old 12-17-2017, 07:25 PM
 
Location: Fullerton, CA
82 posts, read 90,575 times
Reputation: 53
Sorry forgot to add that, we are looking at townhomes - we’ve seen some houses in our price range but think townhomes are a better option but yes the HOA fees do stink..

We’ve been checking out Redfin and like that it gives you an estimate with PMI and all that. We went to 3 open houses yesterday.

I think we are just gonna go with it and find a townhome around 500k - doesn’t seem like prices will decline lol
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