Current Events > Is it smart to get a Mortgage when not 100% comfortable?

(+) Yeah! (+)

I can try to get a mortgage on a 2 bedroom 2 bathroom condo for $89,900. I'd need a 3,200 down payment too but that's all my emergency savings.

The mortgage would be 30 years and about $950 per month with HOA fees, Property tax and Principal on the Mortgage included. I currently pay $1270 per month rent for a 1 bedroom apartment in a nearby area.

Should I go for it even though I'm not 100% confident in the move?

How old are you and how steady is your job?

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I wouldn't spend all my savings on a down payment tbh.


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RemixRBG posted...

I'd need a 3,200 down payment too but that's all my emergency savings

Bad idea.

Assume that the day you move in, you will discover at least one major issue that was missed in inspection

I am also very doubtful you would be approved. Lenders usually want to see some sort of cash reserve iirc

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IfGodCouldDie posted...

How old are you and how steady is your job?

27 and my job is steady but tbh I'm struggling on it right now. I'm a programmer and recently I haven't been hitting my deadlines like I have been in the past.

I also pay the HOA fees for my families home in NYC ($800 per month). Most of everyone else in my family have no real income

RemixRBG posted...

27 and my job is steady but tbh I'm struggling on it right now. I'm a programmer and recently I haven't been hitting my deadlines like I have been in the past.

I also pay the HOA fees for my families home in NYC ($800 per month). Most of everyone else in my family have no real income

How much do you pay in utilities right now?

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Personally I'd wait until youve saved up a bit more.

What's your interest rate? Your monthly payments are what mine were when I bought my first place, but that was $200k for 25 years at 2.94 percent.

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IfGodCouldDie posted...

How much do you pay in utilities right now?

In NYC the electric bill is typically $50 per month.

Where I'm at (Connecticut) the electric and other utilities are included.

I also pay about $100 in phone bills. I'll say about $300-$400 in utilities in total for both locations.

I also have about 8500 in credit card debt as well. Minimums for those come up to about $400 per month

My income is about $63,000 per year before taxes

NES4EVER posted...

Personally I'd wait until youve saved up a bit more.

What's your interest rate? Your monthly payments are what mine were when I bought my first place, but that was $200k for 25 years at 2.94 percent.

I assume it would be around 3.5% according to the internet

I'd try and find a house with one or mutiple other tenants to move in with and reduce rent cost significantly. I wouldnt think of buying a horse or condo until you're more financially stable, with savings enough for 3-6 months, and a decent downpayment to boot.

RemixRBG posted...

I also pay the HOA fees for my families home in NYC ($800 per month). Most of everyone else in my family have no real income

I understand family and all but you're still a individual and their holding you back. Not telling you to cut them off, but if you get seriously backed into a financial corner at some point you have to be mentally prepared to do what needs to be done.

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RemixRBG posted...

I also pay the HOA fees for my families home in NYC ($800 per month). Most of everyone else in my family have no real income

Holy shit. How long has this been going on? You need to pull back on this. Imagine how you could apply that to your credit card debt

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Dat_Cracka_Jax posted...

Holy shit. How long has this been going on? You need to pull back on this. Imagine how you could apply that to your credit card debt

My family has lived there since 1972. I don't really want to leave it too mitch emotional attachment

Prismsblade posted...

I understand family and all but you're still a individual and their holding you back. Not telling you to cut them off, but if you get seriously backed into a financial corner at some point you have to be mentally prepared to do what needs to be done.

I know I need them to step up and take care of things because it's true I'm being held back. I don't want to lose the home though. It was my mother's and she left it to us when she passed away

RemixRBG posted...

I don't want to lose the home though. It was my mother's and she left it to us when she passed away

damn.... if only had more savings built up. i had to spend mine to come up with the apartment deposit. had to be on the waiting list for income restricted housing for 5 years.

loyalty > savings with that info.
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Thanks for the advice everybody. I'm 65% leaning towards waiting and saving money/ paying off debt vs. Going for it and getting the property now.

The condo looks really nice and the monthly payments would actually be cheaper than my current rent plus I'd own a home for family to live in or even rent to someone else so that's the only thing that's making me want to go for it

You should be able to pull more than $63k as a software dev in CT btw

Imo go job hunting first

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No.

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mattymad posted...

Seriously, debt is such a killer - it is NUTS.

Fact it is I almost wish I didn't get credit cards because I put myself in debt. This happened at a time when I had only low income low hours jobs and I had just graduated college. I didn't get my career job until a year and a half later

I'm in a similar situation atm. I'm holding out for a bit until I've saved up some more

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Joenage posted...

I'm in a similar situation atm. I'm holding out for a bit until I've saved up some more

I'm almost thinking about going for it because the apartment is an upgrade from the one I'm in and it's cheaper per month.

I don't think it will stay on the market for long. Also renting feels like throwing money in the trash

I'm in the exact same situation as you. Currently renting right at 1360 per month. Found a house for 85k but it's a 30 minute commute. 3k down but closing cost are covered, and about 600 a month (not sure why you're paying 900, maybe the hoa).

I'll have to buy a new car to travel as I currently have a newer BMW and don't want to put miles on it.

I pulled the trigger today. Even if you're not saving money at least you're putting equity in something. The biggest problem is your down payment. I have about 15k saved, so 3k down is going to hurt me, but you're taking a risk.

As much as renting sucks, just stick with it until you get at least 10k in savings then look.

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First pay off your credit card debt. Now is an especially precarious time. It might or might not work out for you, but if you want to minimize risk, reduce your debts and create a buffer.

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Dont do it.

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hyperpowder posted...

(not sure why you're paying 900, maybe the hoa).

On Zillow it says HOA is $237, Property Tax is $160 and Insurance is $31. The rest is the principle

Reduce debts, get more of a buffer in your savings.

Maybe Murphy's Law isn't as vindictive towards you as it is me, but I still wouldn't press it.

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RemixRBG posted...

On Zillow it says HOA is $237, Property Tax is $160 and Insurance is $31. The rest is the principle

I wouldn't do it unless it's a fat condo in a good neighborhood. The condos i looked at were all ghetto in a bad part of town, and you're paying ridiculous HOAs. They're also harder to sell and lose value faster than houses.

Be careful, but shit if you're like on a beach or something that's pretty cool


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Okay I might just wait even though the home looks nice

If I were to buy though, is it hard to sell a condo?

RemixRBG posted...

Okay I might just wait even though the home looks nice

If I were to buy though, is it hard to sell a condo?

Probably would be easier to rent it out. That's really the only upside I see with condos, especially if rent is high in your area.

You dont want to be basically paying off an apartment for 30 years.

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RemixRBG posted...

HOA

nope

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hyperpowder posted...

I wouldn't do it unless it's a fat condo in a good neighborhood. The condos i looked at were all ghetto in a bad part of town, and you're paying ridiculous HOAs. They're also harder to sell and lose value faster than houses.

Be careful, but shit if you're like on a beach or something that's pretty cool

The Condo looks great and has a balcony.

It's in Hartford in a latino/ black neighborhood close to downtown, it doesn't look too ghetto. I've seen/lived in worse lol

I don't see it being the place I want to live forever though that's another factor im thinking of. My ultimate goal is to move back to NYC

Bananana posted...

nope

Is it because they have too much control over buildings and properties? I'm dealing with an annoying co-op board in my family home in NYC. Is it just as bad in condos?

Go, your kids will pay it

it is 30 years

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You need to be more confident in your move. For now focus on paying off your credit card debt.

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RemixRBG posted...

On Zillow it says HOA is $237, Property Tax is $160 and Insurance is $31. The rest is the principle

You're not paying any interest on your mortgage?

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Yall dont have parents?

Yall not just renting until you inherit the family home?

If you got 8K in credit card debit you shouldnt be trying to get a home at all. You should be able to pay that off in less than a year.

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You got too much debt and too little of a down payment to be buying a house. You should be aiming to pay 20% down and be debt free before buying a house. and after the down payment you should have about 3-6 months of emergency savings in your accounts still.

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hyperpowder posted...

Probably would be easier to rent it out. That's really the only upside I see with condos, especially if rent is high in your area.

You dont want to be basically paying off an apartment for 30 years.

One note on this: some HoAs have rules against renting out condos. At least in my area, but Im sure its pretty common. I still say dont move forward with it if you arent comfortable and the budget is being stressed too much, but this is also a thing to consider and look into.

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I did it but had about $10000 left over after the down payment, the legal fees, the first mortgage payment etc etc.

All in all I spent about $40k before getting the place.