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180K Mortgage on a 50K salary, Doable?
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Date: May 18th, 2007 1:42 AM Author: supple community account Fulton county, GA taxes
200 HOA fees
Townhouse |
Date: May 18th, 2007 1:44 AM Author: supple community account No love? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134127) |
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Date: May 18th, 2007 8:29 PM Author: flushed well-lubricated school fanboi I would not do this. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8137973) |
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Date: May 18th, 2007 8:36 PM Author: supple community account Give me your reasons.
I don't think I'm going to do this either. I want more flexibility. |
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Date: May 18th, 2007 10:13 PM Author: flushed well-lubricated school fanboi Early in your career, you tend to think of financial decisions in terms of payments rather than the gap between your income and expenditures.
As an example, to have a good comfortable life, I think a person needs a thousand dollar gap between guaranteed expenditures and income.
To have a reasonably stress free life, it should be five hundred--expenditures should include money for going out, partying etc.
I don't think that mortgage affords you this gap.
There's a great quote by Satchel Paige "Money doesn't buy happiness, but it does steady the nerves." |
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Date: May 18th, 2007 10:17 PM Author: supple community account Yeah, right now I'd break even with expenditures and income. If I get a roommate I could live reasonably stress free.
I would prefer not to get a roommate. |
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Date: May 18th, 2007 10:24 PM Author: flushed well-lubricated school fanboi That makes sense to me.
I'm not a financial guru or anything, but I know that financial stress is a nasty one because it's constant. |
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Date: May 18th, 2007 1:45 AM Author: concupiscible home Yes. Next question. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134130) |
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Date: May 18th, 2007 1:48 AM Author: supple community account It would be kinda tight huh? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134142) |
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Date: May 18th, 2007 1:56 AM Author: concupiscible home You know how much you bring home. Subtract the PITI + HOA. How much money do you have left? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134158) |
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Date: May 18th, 2007 2:03 AM Author: supple community account 900-1200 (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134172) |
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Date: May 18th, 2007 2:07 AM Author: concupiscible home Well there's your answer. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134188) |
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Date: May 18th, 2007 2:10 AM Author: supple community account cool, now i have to figure out a budget. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134195) |
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Date: May 18th, 2007 1:52 AM Author: geriatric mind-boggling internal respiration single? Support anyone? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134153) |
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Date: May 18th, 2007 1:55 AM Author: supple community account single, support self. No car payment, minimum credit card debt, and a 170 dollar student loan payment. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134155) |
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Date: May 18th, 2007 1:57 AM Author: boyish aquamarine step-uncle's house philosopher-king keep total housing costs at 25% of gross income (or get a roommate) (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134160) |
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Date: May 18th, 2007 2:26 AM Author: Tripping Exciting School Cafeteria Main People Why use some stupid rule of thumb when he has actual figures?
You're using some general proxy when we have specifics. |
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Date: May 18th, 2007 2:30 AM Author: boyish aquamarine step-uncle's house philosopher-king you and the other nerds can do the analysis (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134267) |
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Date: May 18th, 2007 2:32 AM Author: supple community account I should've majored in math, this type of analysis makes me jizz. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134277) |
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Date: May 18th, 2007 2:55 AM Author: Tripping Exciting School Cafeteria Main People The four basic functions really get you going, do they? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134333) |
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Date: May 18th, 2007 2:58 AM Author: supple community account yep (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134335) |
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Date: May 18th, 2007 1:58 AM Author: geriatric mind-boggling internal respiration at 6.5% interest, that's $1137 a month (plus the $200 fees you mentioned in OP)
Your post tax income is what, 35K? (completely guessing) If you subtract the total in mortgage, you get around 20K after tax income, or $1600 a month to live on. Keep in mind that includes any savings, utility bills, student loan, spending cash, and emergency stuff for when the house goes to shit.
It's doable, maybe a bit tight, but if you're planning on being there for a while while your income goes up it will help. Maybe you should save for a downpayment for a while first? |
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Date: May 18th, 2007 2:01 AM Author: supple community account thats actually after a 20% downpayment on 230k. Also, the interest will be 5.9. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134170) |
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Date: May 18th, 2007 2:06 AM Author: boyish aquamarine step-uncle's house philosopher-king 5.9 apr for a 30yr fixed? that's a little high if your credit is good.
georgia southern mortgage: 5.786
priceline: 5.79 |
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Date: May 18th, 2007 2:11 AM Author: supple community account thats like what the fha is set at at the moment. I wish it was back down to 5.5 (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134201) |
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Date: May 18th, 2007 10:59 PM Author: jade bearded stag film digit ratio Yeah, it is high....fucking racist banks trying to keep a brotha from buying a house... (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138459) |
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Date: May 18th, 2007 2:06 AM Author: geriatric mind-boggling internal respiration Ok, that makes it a bit better, and the lower interest rate helps. If you're going to stay with your job for a while, I'd say do it. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134185) |
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Date: May 18th, 2007 2:27 AM Author: supple community account Ok my budget is simple.
groceries 120 roth IRA 160 credit card 150 cable 125 phone 61 power bill 80 furniture 160 student loan 171 total: $1027 per month.
Ok that puts things in perspective. I need to eliminate my CC debt before I buy and knock out as much as possible on that furniture that i just bought.
If I get a roommate I'd be good to go. |
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Date: May 18th, 2007 2:29 AM Author: geriatric mind-boggling internal respiration Absolutely, if you don't mind a roommate (charge what, $600/month?) then the entire thing becomes so much easier. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134261) |
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Date: May 18th, 2007 2:31 AM Author: supple community account 600 would set me up nicely.
I think thats what im going to do.
Also I don't have to have the top tier cable package so i could trim the fat on that. |
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Date: May 18th, 2007 3:21 AM Author: dashing genital piercing circlehead If you're in a position to have a roommate you have too much house. Get a 1 bedroom cheaper. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134367) |
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Date: May 18th, 2007 3:28 AM Author: supple community account LOL. Silly colon deh (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134384) |
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Date: May 18th, 2007 9:15 AM Author: shimmering thirsty foreskin Uhh, I guess no one else in this thread owns a house but you also have to carry homeowners insurance and pay taxes. Insurance might be an extra 100-200/month. Taxes I have no idea about GA but here in TX (where taxes are high) its 200-400/month for a house in the 100-200k range. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134580) |
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Date: May 18th, 2007 9:20 AM Author: soul-stirring round eye parlor Insurance of $100-$200/month for what sounds like a pretty small townhouse? I don't think so. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134588) |
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Date: May 18th, 2007 9:25 AM Author: shimmering thirsty foreskin Its valued at a quarter of a mil. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134600) |
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Date: May 18th, 2007 9:27 AM Author: soul-stirring round eye parlor Uhh...yeah, and there's no way that makes the monthly insurance $100-$200. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8134606) |
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Date: May 18th, 2007 7:03 PM Author: supple community account I think my estimate for monthly housing expenses is a sound estimate at 1700 month, including hoa fees. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8137635) |
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Date: May 18th, 2007 8:38 PM Author: Light party of the first part Hey jackass, HOA fees cover insurance. hth. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138003) |
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Date: May 18th, 2007 8:40 PM Author: supple community account I don't think this place's HOA's cover insurance, I'll have to check. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138008) |
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Date: May 18th, 2007 8:42 PM Author: Razzmatazz Striped Hyena they cover common area insurance, but not your own personal unit insurance. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138013) |
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Date: May 18th, 2007 8:42 PM Author: Light party of the first part It likely covers the structure -- you cover the interior and your possessions, which is dirt cheap. Although maybe in hotlanta the risk of theft requires higher premiums... But still, it's like $20/month.
Your most retarded expense is $125 cable and credit card debt. hth.
Edit: Also, it's retarded to contribute to an IRA when you have outstanding cc debt and furniture loans (at what 22% or so). |
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Date: May 18th, 2007 8:43 PM Author: supple community account yeah, im going to get rid of those before I move anywhere. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138019) |
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Date: May 18th, 2007 8:45 PM Author: supple community account My CC debt is only 1250, I can pay it all off now, but Im keeping that money in my savings acct. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138022) |
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Date: May 18th, 2007 7:05 PM Author: Ungodly cobalt meetinghouse Why do you want to tie up all your money in a house when you're only 22 years old? Live a little... travel, buy expensive impractical shit, etc. Also what if you want to move, or go somewhere else for law school, your fiance hates your house?... (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8137643) |
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Date: May 18th, 2007 7:12 PM Author: Spectacular really tough guy What if he misses the bus? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8137672) |
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Date: May 18th, 2007 7:19 PM Author: supple community account I travel a lot. I may not even go to law school. She wouldn't be my fiance if she hated my house, also, I can sell.
I have a plasma tv, a ps3, and an xbox 360. I think i've covered the expensive impractical shit.
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Date: May 18th, 2007 9:16 PM Author: Tripping Exciting School Cafeteria Main People Building wealth is evil! (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138123) |
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Date: May 18th, 2007 7:15 PM Author: Razzmatazz Striped Hyena rent out the spare bedroom is it fairly new or does it need some work? also -- beware of boosts to the hoa -- roof, parking lot, pool, etc. |
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Date: May 18th, 2007 7:18 PM Author: supple community account brand spanking new in west midtown.
This is what im thinking about doing. |
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Date: May 18th, 2007 8:41 PM Author: Razzmatazz Striped Hyena then you can be fairly certain your costs are not going to shoot up. but it's gonna be a stretch, and you won't be able to buy a new car any time soon. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138010) |
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Date: May 18th, 2007 8:43 PM Author: supple community account This is true. I think I'm going to take a little more time and save a bit more just so I can put down a great deal more. Like I need to get the loan down into the 150's. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138017) |
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Date: May 18th, 2007 8:51 PM Author: Light party of the first part no no no no no.
You don't understand anything about finances do you?
Putting anything more than 20% down is retarded, and even 20% is borderline retarded:
A. You'll want a large mortgage payment so that a lot of interest is deductible from your income.
B. With a 10% down payment, you leverage the appreciation of your investment 10:1. With 20% down, you leverage it 5:1.
Unless you intend to live in this house for 30 years, the credited thing to do is to buy as much house (with 10% down) as your income will afford. You'll have to pay PMI for a couple of years, until a reappraisal indicates that you have 20% equity, but it's worth it.
Buy a simple guide to finance. Read it. |
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Date: May 18th, 2007 8:57 PM Author: supple community account The 20% comes from a downpayment assistance program. It's not money that I have in my pocket. If it was up to just what I had, i would not buy shit. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138058) |
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Date: May 18th, 2007 9:02 PM Author: Light party of the first part "downpayment assistance program"
I don't know what this is, but there's no such thing as a free lunch. Whatever this is, you need to factor in the payments you'll have to make to service it. |
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Date: May 18th, 2007 9:04 PM Author: supple community account 0% interest, no payments to make and is forgiven if you keep the house for 10 years. If you sell before ten years then you have to pay back the 20% plus a percentage of the profits from the sell. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138078) |
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Date: May 18th, 2007 9:05 PM Author: supple community account Here are the details of the program:
http://www.atlantada.com/buildDev/HomeAtlanta.jsp
Something might catch your eye that i may have overlooked. |
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Date: May 18th, 2007 9:13 PM Author: Light party of the first part Holy shit; I've never seen programs like this.
The only concern is that if the city is forced to subsidize homeownership in these target areas, it might be the case taht they are chronically shitty places to live, meaning that you won't be able to sell when you want to.
Also, ten years is a hella long time to plan on living in your first home. |
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Date: May 18th, 2007 9:18 PM Author: Tripping Exciting School Cafeteria Main People Can he rent it out? (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138135) |
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Date: May 18th, 2007 9:23 PM Author: Light party of the first part Being the Chief of the Atlanta Development Authority, I say yes. Presumably he wouldn't be able to be an absentee LL though. Otherwise I'll buy one of these. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138156) |
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Date: May 18th, 2007 9:24 PM Author: supple community account No, it has to be a principle residence. Of course there's ways to make sure no one knows you don't live there. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138161) |
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Date: May 18th, 2007 9:23 PM Author: supple community account It's basically a ploy to get more homeowners in the city so they can tax that ass.
North Fulton county is threatening to split with south fulton county cuz the north subsidizes the south with all the tax money.
Some of the target areas are shitty, but for a first time home buyer like me, i can buy in any part of the city of atlanta, even though the place im looking at is within the target area.
I can sell before ten years and just pay back that 20k from the profits. the area is going to develop nicely and should be worth a good amount in that ten years.
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Date: May 18th, 2007 9:25 PM Author: Light party of the first part In this case, I vote yes.
If things get tight, switch to basic cable, forget the IRA, and don't finance stupid stuff like furniture. |
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Date: May 18th, 2007 9:26 PM Author: supple community account thats the credited response. If I have a roommate or two I'll be fine.
This place is a tri level townhome three bedrooms and three and a half baths of sweetness. |
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Date: May 18th, 2007 11:37 PM Author: big-titted theater stage mad-dog skullcap The down payment assistance pretty much makes this a no brainer. It's like a free 50K. That's hard to pass up. I'd say be tight with budgeting or get a roommate and make it work. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138559) |
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Date: May 18th, 2007 11:39 PM Author: supple community account That program really makes this shit so hard to pass up.
I could get a cheaper, but older place near peidmont park though.
It's a townhouse thats about 20 years old right across from the park.
The house that I want will be on the same street as the first and main park in the beltline project that will be three times the size of piedmont park and theoretically wont have the gays like peidmont. |
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Date: May 18th, 2007 11:47 PM Author: big-titted theater stage mad-dog skullcap i don't know the atlanta market, but investing in a house with someone else's money is just an awesome deal. may as well get a nicer place, especially if you might be there 10 years to take ful advantage of the program. (http://www.autoadmit.com/thread.php?thread_id=633539&forum_id=2#8138592) |