Pay off your student loans first. They will haunt you forever if you don't pay them off quickly.
Buying a House in 2 yrs - Realistic Numbers?
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Also with rent you don't have to worry about fixin the roof, plumbing etc it adds up. And you will have to pay for homeowners and flood insurnace. But pay off the student loans first. They are easy to put off but down the raod they get real painful.
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Originally Posted By: supton
I dunno, I still have regrets about buying my house. I really can't sell it, could stand to move at least a few miles closer to work; it depreciated instead of appreciated .... Honestly, I'm not sure I got my money's worth from the inspection I paid for.
My sentiments exactly. I'm in a king pine, lot-constructed log home built in 1983. (Psst! Anybody want a 2200sq log home on a +/- 2 acre lot abutting the State forest for $150K?)
I don't think I would want to rent in a complex, though ... Again, Property tax is insane at over $500 a month for a market entry level house.
Still, Good time to buy low rates moderate prices - I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
I dunno, I still have regrets about buying my house. I really can't sell it, could stand to move at least a few miles closer to work; it depreciated instead of appreciated .... Honestly, I'm not sure I got my money's worth from the inspection I paid for.
My sentiments exactly. I'm in a king pine, lot-constructed log home built in 1983. (Psst! Anybody want a 2200sq log home on a +/- 2 acre lot abutting the State forest for $150K?)
I don't think I would want to rent in a complex, though ... Again, Property tax is insane at over $500 a month for a market entry level house.
Still, Good time to buy low rates moderate prices - I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
The student loans will be there forever, but it doesn't make sense to me throwing away $600 a month renting just to take more time to pay off student loans.
Originally Posted By: ARCOgraphite
Originally Posted By: supton
I dunno, I still have regrets about buying my house. I really can't sell it, could stand to move at least a few miles closer to work; it depreciated instead of appreciated .... Honestly, I'm not sure I got my money's worth from the inspection I paid for.
My sentiments exactly. I'm in a king pine, lot-constructed log home built in 1983. (Psst! Anybody want a 2200sq log home on a +/- 2 acre lot abutting the State forest for $150K?)
I don't think I would want to rent in a complex, though ... Again, Property tax is insane at over $500 a month for a market entry level house.
Still, Good time to buy low rates moderate prices - I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
We have some neighborhoods in the more affluent suburbs where the taxes are $2000 a month.
Originally Posted By: ARCOgraphite
Originally Posted By: supton
I dunno, I still have regrets about buying my house. I really can't sell it, could stand to move at least a few miles closer to work; it depreciated instead of appreciated .... Honestly, I'm not sure I got my money's worth from the inspection I paid for.
My sentiments exactly. I'm in a king pine, lot-constructed log home built in 1983. (Psst! Anybody want a 2200sq log home on a +/- 2 acre lot abutting the State forest for $150K?)
I don't think I would want to rent in a complex, though ... Again, Property tax is insane at over $500 a month for a market entry level house.
Still, Good time to buy low rates moderate prices - I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
We have some neighborhoods in the more affluent suburbs where the taxes are $2000 a month.
Do you want to be paying off student loans when are trying to retire?
Originally Posted By: ARCOgraphite
I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
Wow.
Exactly when did you buy your house, and how bad was your credit at that time?
BC.
I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
Wow.
Exactly when did you buy your house, and how bad was your credit at that time?
BC.
Originally Posted By: millerbl00
Do you want to be paying off student loans when are trying to retire?
Do I want to be paying rent or a mortgage when I retire? The various loans I have are 5 and 10 year. It's < $40,000. I make more than $40,000.
Do you want to be paying off student loans when are trying to retire?
Do I want to be paying rent or a mortgage when I retire? The various loans I have are 5 and 10 year. It's < $40,000. I make more than $40,000.
Thats what I thougt too. A $28k loan turned into a $92k loan. Bad job market, lower paying jobs that it should have been. Costs I never thought I would have. My advice get rid of those student loans. 5 to 10 will turn into 30 years.
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Originally Posted By: millerbl00
Thats what I thougt too. A $28k loan turned into a $92k loan. Bad job market, lower paying jobs that it should have been. Costs I never thought I would have. My advice get rid of those student loans. 5 to 10 will turn into 30 years.
I guess the way I see it is, if I put all of this money towards student loans, I'll have nothing to show in 4 years.
If I put all of the money towards a house, I'll have no student loans in 4 years ... but I'll still be paying $600 a month for an apartment.
Thats what I thougt too. A $28k loan turned into a $92k loan. Bad job market, lower paying jobs that it should have been. Costs I never thought I would have. My advice get rid of those student loans. 5 to 10 will turn into 30 years.
I guess the way I see it is, if I put all of this money towards student loans, I'll have nothing to show in 4 years.
If I put all of the money towards a house, I'll have no student loans in 4 years ... but I'll still be paying $600 a month for an apartment.
Don't bother saving up so much cash to put down. The reality is the major piece of info which I understand not sharing is your income. Your bills seem small but it all depends on your income. $80k + $45k(student loan debt) buys nothing around here.
I will state my $3k down lead on $100k home at age 21 to a sale 6 years latter of $270k. If I never did that I would have never been in the "game" for buying homes. I had to buy a larger home for kids and now have 65% equity in my current home 20 years latter.
What I am getting at is start early as rates are low.
I will state my $3k down lead on $100k home at age 21 to a sale 6 years latter of $270k. If I never did that I would have never been in the "game" for buying homes. I had to buy a larger home for kids and now have 65% equity in my current home 20 years latter.
What I am getting at is start early as rates are low.
You will show that you have no debt. Believe me thats priceless. But its your choice. I thought the same way and now a house note and a student loan note way into retirement.
Originally Posted By: Miller88
Originally Posted By: millerbl00
Thats what I thougt too. A $28k loan turned into a $92k loan. Bad job market, lower paying jobs that it should have been. Costs I never thought I would have. My advice get rid of those student loans. 5 to 10 will turn into 30 years.
I guess the way I see it is, if I put all of this money towards student loans, I'll have nothing to show in 4 years.
If I put all of the money towards a house, I'll have no student loans in 4 years ... but I'll still be paying $600 a month for an apartment.
Just do your homework though on what you think the house costs to buy and maintain. Mortgage and property taxes are just part of the cost and you don't want to be stretched too much on known expenses as unplanned ones do pop up from time to time for a home owner...
Originally Posted By: millerbl00
Thats what I thougt too. A $28k loan turned into a $92k loan. Bad job market, lower paying jobs that it should have been. Costs I never thought I would have. My advice get rid of those student loans. 5 to 10 will turn into 30 years.
I guess the way I see it is, if I put all of this money towards student loans, I'll have nothing to show in 4 years.
If I put all of the money towards a house, I'll have no student loans in 4 years ... but I'll still be paying $600 a month for an apartment.
Just do your homework though on what you think the house costs to buy and maintain. Mortgage and property taxes are just part of the cost and you don't want to be stretched too much on known expenses as unplanned ones do pop up from time to time for a home owner...
Find a house that will be appealing to others when you go to sell. Keep in mind that you're young yet, and this likely won't be your forever house. And, plan on having a little more room than you think you'll need. Houses inevitably accumulate things, and those things need space. All the garden things need a winter home, and you'll likely need a snowblower being in Syracuse. That needs a summer home. Plus, you might find yourself with a significant other, pet, and a rugrat or two in 5-10 years time.
I recently purchased a house. It's slightly larger than what my immediate needs are. That being said, it will accommodate future growth of my presently tiny family.
Condition is important, as is knowing the general condition of the other houses so you can jump on a good house before the other guy. We looked at 15-17 houses in our price range, so we knew what was in good shape, and what had been spruced up with a coat of paint.
Best of luck!
I recently purchased a house. It's slightly larger than what my immediate needs are. That being said, it will accommodate future growth of my presently tiny family.
Condition is important, as is knowing the general condition of the other houses so you can jump on a good house before the other guy. We looked at 15-17 houses in our price range, so we knew what was in good shape, and what had been spruced up with a coat of paint.
Best of luck!
Originally Posted By: millerbl00
You will show that you have no debt. Believe me thats priceless. But its your choice. I thought the same way and now a house note and a student loan note way into retirement.
I agree that debt is bad.
You will show that you have no debt. Believe me thats priceless. But its your choice. I thought the same way and now a house note and a student loan note way into retirement.
I agree that debt is bad.
I think we'd all agree that being debt free is great, but you have to factor in what the interest rate is on the student loans, and the money you're throwing away on rent.
I purchased my condo and ended up paying less on the mortgage + tax + HOAs than I was paying for rent. That extra money helped me pay off my higher interest rate student loans, plus I'm gaining equity I'm getting on the home itself.
If I was in your position, I would start looking for homes and purchase as soon as you can, interest rates are pretty killer right now.
I purchased my condo and ended up paying less on the mortgage + tax + HOAs than I was paying for rent. That extra money helped me pay off my higher interest rate student loans, plus I'm gaining equity I'm getting on the home itself.
If I was in your position, I would start looking for homes and purchase as soon as you can, interest rates are pretty killer right now.
Buy sooner rather than later, interest rates will probably start to tick up next year at some point and the market is improving.
Many states have good first time buyer programs where you can put little or nothing down.
Talk to a bank to figure out if you can even get a mortgage. Your student loan may or may not be a problem depending on how much income you have to cover your debts. For mortgages I think your capped around 30% these days.
Many states have good first time buyer programs where you can put little or nothing down.
Talk to a bank to figure out if you can even get a mortgage. Your student loan may or may not be a problem depending on how much income you have to cover your debts. For mortgages I think your capped around 30% these days.
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Yeah, now is a good time to buy with low rates.
I'll be meeting with my Credit Union this upcoming week to discuss it with them a bit more.
My fear is ... I do NOT like big purchases. I'm afraid I'll see the money in my bank account and not want to spend it.
My fear is ... I do NOT like big purchases. I'm afraid I'll see the money in my bank account and not want to spend it.
Originally Posted By: Bladecutter
Originally Posted By: ARCOgraphite
I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
Wow.
Exactly when did you buy your house, and how bad was your credit at that time?
BC.
1990, and my credit was excellent and still is.
WSJ 1990:
Prime Rate Is Cut to 9 3/4% By a Few Regional Banks
By MICHAEL QUINT
Published: December 8, 1990
Email
Print
A few regional banks cut their prime lending rates yesterday to 9 3/4 percent from 10 percent, a move that is expected to spread to other banks, although analysts are not sure when.
The cuts are a sign that the Federal Reserve's recent moves to ease monetary policy and reduce short-term interest rates in the financial markets are beginning to spread through the economy.
The prime rate, which has been stable at 10 percent since January, when it fell from 10 1/2 percent, is a benchmark for rates charged on loans to small and medium-sized businesses. It is also used at some banks to determine rates on home equity and credit card loans. 'Little Beneficial Impact'
"So far the Fed's moves to lower rates have had a relatively little beneficial impact on rates at which individuals and smaller businesess can borrow, which is one reason why I expect further easing by the Fed," said Dana Johnson, an economist at the First National Bank of Chicago.
Originally Posted By: ARCOgraphite
I started at 10.25% on my mortgage and it took FOREVER to pay down even a lil' bit of the principal.
Wow.
Exactly when did you buy your house, and how bad was your credit at that time?
BC.
1990, and my credit was excellent and still is.
WSJ 1990:
Prime Rate Is Cut to 9 3/4% By a Few Regional Banks
By MICHAEL QUINT
Published: December 8, 1990
A few regional banks cut their prime lending rates yesterday to 9 3/4 percent from 10 percent, a move that is expected to spread to other banks, although analysts are not sure when.
The cuts are a sign that the Federal Reserve's recent moves to ease monetary policy and reduce short-term interest rates in the financial markets are beginning to spread through the economy.
The prime rate, which has been stable at 10 percent since January, when it fell from 10 1/2 percent, is a benchmark for rates charged on loans to small and medium-sized businesses. It is also used at some banks to determine rates on home equity and credit card loans. 'Little Beneficial Impact'
"So far the Fed's moves to lower rates have had a relatively little beneficial impact on rates at which individuals and smaller businesess can borrow, which is one reason why I expect further easing by the Fed," said Dana Johnson, an economist at the First National Bank of Chicago.
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I find it crazy that interest rates could be double-digit. Then again perhaps people shrugged it off, due to the lower principle? I wasn't in the market back then.
http://www.jparsons.net/housingbubble/
10% interest on a $100k house (in 1990) would garner the same interest as 3% on a $330k house.
http://www.jparsons.net/housingbubble/
10% interest on a $100k house (in 1990) would garner the same interest as 3% on a $330k house.
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