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Biting Off Too Big A Mortgage Payment ?

tammyjk
Regular Contributor

Re: Biting Off Too Big A Mortgage Payment ?

In our case buying made more sense.  We purchased during the last downturn and my house payment is far less than rent would be.  We also had to consider that we have 3 dogs and I knew the area I wanted to be in.  Rents have gone up and up here.  All of that said, when I purchased, I did it with my husbands retirement date in mind.  We want our home paid off as he goes into retirement.  Not every plan goes according to plan lol.  Covid has taught us to live on less and it wasn't something we tried to do.  We were terrible about eating out but with Covid that came to an end.  No take out  or dining out in over a year.  Talk about saving money!  I also planted a very large garden that will supply us with produce for an entire year.  Gardening in Florida is year round.  

 

We've been in our home for 8 years and my husband has more than tripled his salary.  Once again that bigger home was tempting but piece of mind was always more attractive.  

Message 11 of 14
frogman1
Valued Contributor

Re: Biting Off Too Big A Mortgage Payment ?

If you have $9600 in income after taxes 401k contribution/medical coverage and are using $5600 of it for housing that seems crazy. You know houses require upkeep. Expect to average about 5 percent of cost to maintain the home. I don't see how this will work. Get a cheaper house. 

More cards than I can mention in a signature.
Message 12 of 14
NoMoreE46
Established Contributor

Re: Biting Off Too Big A Mortgage Payment ?

OP:
Assuming that this $5600 includes taxes and insurance for 360 months.

A few more questions -

Have you got 20 % for a down payment?
Is there an HOA?
Is the house newer?

Edit: Just noticed that this is from last August.....


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Message 13 of 14
tammyjk
Regular Contributor

Re: Biting Off Too Big A Mortgage Payment ?

I looked back at your comment with a chuckle.  We just replaced our A/C and our roof.  While insurance covered most of the roof, it was still expensive.  We had the funds to carry us through.  I think Covid reminded people of the very hard lessons learned during the last economic crisis.  Hopefully.  I know it's changed the way my 21yr old looks at finances.  At the start of Covid when it was difficult to buy things, I told her  "this will change how you look at money and life".   Simple things like wasting products went by the wayside because she knew we may not be able to buy them again soon.  She got laid off and saved almost every penny of her unemployment for school.  She will come out of Covid with 8k in the bank, her health insurance in tact along car insurance, half way through to her BS degree and a credit score of 745.  I'm a proud mom!

Message 14 of 14
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