Yes, there's a LOT of work in a home and a LOT of expense. Finish schooling, pay off your student loans, save the 20% down and "then" begin to think about buying a home as right now they are a liability rather than an asset.
Houses are very very very very very expensive. mortage, interest, homeowners insurance, property taxes, repairs, maintenance, lawn care, bigger space so higher electricity bill, enexpected expences... the list goes on. No need to spend your young years tied down to a house living frugally. Wait until your more aware of what your getting into. I'd say 30 years old is a good age to buy a house. By this age you'll have a generally better idea of what you want and should have a stable job making more money. The last thing you want to do is have to go through foreclosure.
You are absolutely correct rent is a waste of money. But I think you have miscalculated your monthly payments and have forgotten to include the taxes, insurance and private mortgage insurance your actual payment will include.
Regardless you will need a down payment. And with your present limited income, the size of loan you will be able to qualify for will be limited. I suggest you speak to a parent (or in-law) about co-signing a loan allowing you to buy today, that you can refinance in your names alone after you graduate and are making more money. Plus I believe a visit to your bank to discuss your lending options will be enlightening and educational. Good Luck.
ur math on buying a house is uninformed.
yes, the concept of rental 'wasting' sounds valid
UNtil u do real world math.
houses are EXPENSIVE , the myths of house interest
as a deduction is just that.
if in USA , visit a library for these at least
to start learning least u get seriously burned.
house buying kit for dummies. e.tysen.
total money make over, dave ramsey.
both will save u Decades and 100,000s$ in
hard life mistakes by learning form others.
smart informed people , work their jobs
for full time 2 yrs while living as starving
students. = small cheap apartment, cash cars.
4% down only says - u not ready to move.
4% says u will pay extra money monthly
(200 - 400$) for PMI.
if u get wrong loan u will spend that PMI
for decades.
informed people do not get suckered into
houses costing more than four times their
yrly incomes.
3 times yearly income is better.
as for using wife's income = get her to understand
she WILL be working six months after first and each kid
OR u will need to move.
houses cost more in insurances, transportation costs,
yard up keep, repairs, electrics, gas, oil, water sewage,
trash pick up, school taxes, county taxes, city taxes,
state taxes.
of course, houses have 'empty house syndrome' that
can cost u 15,000 - 40,000$ in first five yr.
do Real world math learning b4 u get burned - seriously.
800 is a mortgage payment...yours or the landlord....you pay it either way....start with a simple list pros and cons.. 15 years down the road you have paid 150,000.oo in rent....start there....
Can you afford a new roof or to replace an a/c unit?
the plan was to have an apartment for about a year and then buy a house. (newly married/ pretty poor but not living paycheck to paycheck poor- one crappy fulltime job and one semi- crappy parttime job (about to get bachelor degree))
but it just doesn't make sense to spend $800 a month on an apartment when all that wasted money could be going into the house?
the only difference is that we would need a down payment. but my credit score is good so i can get a 4% downpayment (which can be done fairly easily (only 4% because we need this pretty quick)) and only have to pay less than $500 a month (with a 30 yr loan- would definitely be paying more a month though, but thats just the smallest amount).
plus its way closer to my college (last year) and would spend a ton less money on gas.
it just seems smarter to me to put that $800 a month on a house that we plan on getting anyways instead of on an apartment that we plan on leaving.
but then again.. i've never owned a home before so i have no idea what to expect.
what do you think is the smartest choice?
