Am I crazy?

Discussion in 'Social Club' started by 1FastCam, May 28, 2009.

  1. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    Got done talking to a friend and his wife, and it was about purchasing a home.

    Now. They pay $1500 in rent right now with both working. They are putting $0 down on a $250k house, and think they are going to have a mortgage of $1500.

    My whole point of the discussion was they should aim for a lower price house. The $1500 was the MAX. they could pay. Why do that?! Shoot lower just in case someone gets laid off or something.

    Am I crazy or do the numbers just not add up?
     
  2. Reflex

    Reflex Well-Known Member

    Oct 11, 2007
    Sullivan, MO
    First time home buyers?
     

  3. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
  4. winger

    winger Active Member

    Oct 24, 2003
    that's probably pretty close for a 30 year, just guessing based on my real estate prowess as of late. i hope they realize that is the way a lot of people have lost their homes as of late.
     
  5. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    That was my whole point Winger. Thats the whole reason we havent bought the house we are in. Its not safe to gamble on dual income at this point. IMO.
     
  6. Reflex

    Reflex Well-Known Member

    Oct 11, 2007
    Sullivan, MO
    We got a pretty decent deal being a first time home buyer going through the USDA. They only required 2% down (cover the cost of the USDA inspection) for a fixed rate 30 year morgage. With that being said, I would not be looking at a payment in the top of my range.
     
  7. winger

    winger Active Member

    Oct 24, 2003
    well you can't tell people anything these days. young couple who i think the world of just got a nice house way over what they should right now. he just started his job and she is still in school. i think they rushed into it but i truly hope it works out for them.

    no more than a 1/4 of your take home for a 15 year is the only way to roll.:cheers:
     
  8. TAB

    TAB Active Member

    Jun 18, 2007
    Southern Illinois
    I plan on buying my next place with cash!!
     
  9. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    Well thats what I thought. Its intersting that the payment is that low on that amount. I was always under the impression that it was about $1k per $100k value.
     
  10. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    [rquote=1278634&tid=89479&author=TAB] I plan on buying my next place with cash!![/rquote]

    :hysterical: Me to. I'll only need to save for about 60 years. :2thumbsup:
     
  11. Ginger

    Ginger Administrator Staff Member

    Nov 23, 2003
    Chariton County
    :confused: Don't quite seem right. Is that going to include their home owners insurance, pmi and taxes? Our house loan is under $200,000 and we are paying around $1400 with that included in the payment.
     
  12. pinwheel

    pinwheel Jenny's Lackey

    Jun 17, 2006
    middle of nowhere
    [rquote=1278640&tid=89479&author=1FastCam]Well thats what I thought. Its intersting that the payment is that low on that amount. I was always under the impression that it was about $1k per $100k value.[/rquote]

    The loan we're signing tomorrow for the new house & our farm is 205K & the payment is going to be around $1200. 5.2% interest, 30 years, so I'd say $1500 is in the ballpark.

    Only problem with maxing out on the payment is what do you do when there's an emergency, or something unexpected comes up & you have no wiggle room? On top of that payment, a guys still gotta be able to pay the insurance & property tax annually. There's no way I'd put us in this position if we had a bunch of other debt. My truck & my farm is all we owe for the most part.
     
  13. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    [rquote=1278648&tid=89479&author=Ginger]:confused: Don't quite seem right. Is that going to include their home owners insurance, pmi and taxes? Our house loan is under $200,000 and we are paying around $1400 with that included in the payment. [/rquote]


    They claim the $1500 includes insurance and taxes.
     
  14. Yes you are crazy and I am not sure about the other part of the question

    :cheers:
     
  15. nastyjack63

    nastyjack63 Well-Known Member

    Dec 17, 2006
    osage county
    [rquote=1278629&tid=89479&author=winger]

    no more than a 1/4 of your take home for a 15 year is the only way to roll.:cheers:[/rquote]That wouldn't get me a cardboard box.:whinging::whinging:
    Actually our farm payment is less than that and with car payment, insurance, taxes, etc. I doubt I could make a bigger payment and still get to eat more than 2 meals a week.
     
  16. rat

    rat Legbone

    Dec 13, 2005
    1500 a month on a 250K total note with the pmi they'll have to pay due to the lack of downpayment, taxes and everything else sounds like a VERY conservative estimate. Wouldnt surprise me if it were more than that but they are advertising real good rates right now.
     
  17. Rebel2

    Rebel2 Well-Known Member

    Dec 16, 2003
    Ozark, MO
    id guess more 2-2200ish for a twofitkyhouse
     
  18. 1FastCam

    1FastCam New Member

    Nov 25, 2002
    CT
    [rquote=1278730&tid=89479&author=Rebel]id guess more 2-2200ish for a twofitkyhouse[/rquote]

    Kinda what I was thinking Reb.

    I guess its really none of my business, but was just wanting to be the voice of reason...........party of 1.
     
  19. Rebel2

    Rebel2 Well-Known Member

    Dec 16, 2003
    Ozark, MO
    with a good cb score, my best math thats closely what it would be

    butttttttttttt ive been wrong before ;)
     
  20. Reflex

    Reflex Well-Known Member

    Oct 11, 2007
    Sullivan, MO
    We bought our house in April, 2008. Mortgage amount 128,xxx with a 6% interest rate and pay under $1000 which includes insurance and taxes. No down payment, no PMI.