Gonna wait it out

[seruby]

So I was pretty excited about the prospect of buying a house, was looking at places online, and figuring out financials.   I even figured by my birthday (the day I was hoping to have a new place)  I'd have about 15-16k saved up.  That could potentially be enough for closing and a 3.5% down payment (most houses around here are $250+), it would leave me tight for a bit.   I even asked my apartment complex the price difference for going to a shorter term lease since my renewal date is soon, and it's $50, $100, or $200 extra, depending on the term.

Taking all that in, and knowing how I'd be stretched to buy a house with my current rent, I'd rather not lose any extra money if I can help it.  Reading about the PMI on the life of the loan for an FHA loan made me think about that as well.   I live comfortably enough that my budget's not spread thin, just haven't saved up enough and I don't want to blow my entire savings on a house.  So, I think the smart thing to do is to stay in my apartment another year, while continuing to save up, then try to buy a house next year.  Then, I'll have a bigger down payment, some extra money, and hopefully a better credit score.  

[sports1965]

That sounds like a very good plan

only problem is interest rates will probably be in the high 4's by then ,but who knows

[Bratbaby]

I know it's hard to wait, but it sounds like you've thought it through and have a good plan.

[seruby]

Yea, I don't really want to wait.   I've been renting for 11 years now and I want a big place, instead of being stuck on 1 floor (the reason I'm not buying a rancher when I do buy a house).   But if I do find a place mid-lease and break, it'll cost me 3 months rent plus my security deposit.   And lowering my lease terms will cost me more money, with no guarantee when I'll even find a suitable place - so I could be paying $200 extra for 1 month, or $200 extra for 4 months..

[ezdriver]

Hopefully you can save faster than price and interest rate increases.

As an example, we have had three price increases in my community in three months. That represents over $6,000 in price increases ... in just three months. The resale market is hot in many areas of the country ... but maybe not in your area. If you think that you will be stretched now, my bet is that you will feel that pain even more next year.

That said, you have to do what makes you comfortable ... but be realistic and look at the long view too.

[Anonymous]

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@ezdriver wrote:

Hopefully you can save faster than price and interest rate increases.

As an example, we have had three price increases in my community in three months. That represents over $6,000 in price increases ... in just three months. The resale market is hot in many areas of the country ... but maybe not in your area. If you think that you will be stretched now, my bet is that you will feel that pain even more next year.

That said, you have to do what makes you comfortable ... but be realistic and look at the long view too.

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Sound advice here.. ^^^^^^