(Up above is a house Baseball boy and I have been admiring online....)
Well...my house down payment is locked up at WAMU/J.P.Morgan. No sweat...not looking for a home...well not looking for a home seriously.
I am wondering about mortgage interest rates though. I wonder if this bailout will mean they raise interest rates because the economy is more stable/ to help the banks a bit more.
I am lucky to have seen this housing crisis from the beginning as an outsider. I learned alot. It confirmed that my initial plan was good to put down 20% despite pressure from peers and advertisements to "jump in now- you are a fool if you miss this opportunity." I decided on the 20% route because that's the way homeowners who still own their home 10,20,40 years later did. It's a proven course to success...all this other stuff was just trendy bling.
But sadly...I think I am a bit spoiled on the mortgage rates. 5% interest sounds good. Quite tasty. Now people are remembering interest rates from the eighties for 10-11%? No way! I'm not paying that! I want to lock in now!
So off to crunch the numbers I went last night. We cant afford it....I am having an opposite problem of most people- I finally have a decent down payment-but don't think we can afford the monthly mortgage.
So now the new goal is to put 30% down. I am kind of sad about it because 30% of $200-250,000 is a long way off...but to sleep at peace Baseball boy and I want to keep the mortgage and all house bills at or under $1600 a month.
So...nothing much to report here. I am financially the same as I was yesterday, just a bit further behind in our life-goals. But we are still going house hunting in November. ~Just to look though!
30% down payment?
September 26th, 2008 at 01:34 pm
September 26th, 2008 at 02:00 pm 1222434023
September 26th, 2008 at 02:36 pm 1222436216
We did about 28 percent down on our first house and it made a difference.
September 26th, 2008 at 03:10 pm 1222438244
September 26th, 2008 at 03:19 pm 1222438749
-not to say we are not ready for this- we are and we can pay a mortgage. We have been paying rent and bills in a house for 4 years (cant believe we have rented this house for so long!) now with this life. It just needs to be a low monthly payment so we can handle all the highs/lows.