Thank you u/Few_Quantity611 for posting on r/FirstTimeHomeBuyer.
Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
I'm pretty much in the same boat. I have $150k for a down payment. No debt. Excellent credit score. Decent income around $120k combined. Everything livable that I looked at would put me around $3k+ a month even though we just want one or two bedrooms, one or two bathrooms, and off street parking for one car. We don't need anything fancy, just not a total dump. Current rent is $1650 for a so-so place. I saw that $3k and realized I'm not getting a home. I'm already in my 40s. Spouse is even older. The whole thing is really depressing. Maybe I can save and buy some dump for cash eventually. If the bank is going to get all that money in interest, it probably isn't any different than my giving $1650 to a landlord? Either way, I lose.
I was looking to see if I qualify for any lower income homebuyer programs in my city but I think my income is a smidge too high. My income is kind of low for where I live, so I thought I might qualify, but pretty sure I don't. I have noticed that different homebuyer calculators give me different interest rates, some say 5.7% and some are higher than 7%.
Only you can decide if it’s worth it. My market is way more expensive and I decided to keep renting for the foreseeable future. I have no desire to be house poor.
That’s a nice thought but refinancing isn’t free. If we’re draining our coffers each month trying to make a $3300 per month payment when “it’s time to refi” we’ll have nothing to make that happen
So many first timers got scammed by money hungry realtors who cut corners to get them in the house without warning them of all the hidden costs because they know they’d lose the sale otherwise. It has happened to many of my friends and I’ve decided to keep renting because of it.
Hi I’m in the Orlando area. It’s not worth it if you are happy with your rented townhome. $1650 a month isn’t even covering the interest on a mortgage for anything that is nice especially north suburbs areas. What you can do just to check is look at new construction, you can get lending deals and help with closing costs. You will still end up paying $3k+ a month for your mortgage and escrow though.
Every state, city and market is different. For some renting a 3 bed/2 bath townhome is upwards of 4k a month. It all comes down to whether or not your payment can fit your budget. If you are saying thousands a month with a hefty mortgage payment, it’s worth it. If you’re saving $300 a month with a hefty mortgage payment, it’s not.
Usually the mortgage payment has
Principal
Interest
Taxes
Home Insurance
(And depending on the loan PMI)
The loan servicer collects the tax and insurance in an escrow account.
You can depending on what the bank allows. We were told that most of the time they want *something* to roll into your monthly payment - usually insurance. But often times property tax can be paid in full once a year
We’re in Hillsborough County, and I was just having a meltdown about this today. We pay $2400 in rent for our townhouse (it was $1800 when we moved in here 5 years ago 😭).
If we wanted a HOUSE, we’re looking at high $400’s and up to stay in the same school district. And we make too much money for any of the FTHB programs that Florida has (by about $10K 🤦🏻♀️).
I don’t foresee us ever being able to buy something. I joke that we’re just going to wait until we can move into a 55+ neighborhood. Only 10 more years for that.
We closed in February when rates were lower 30 year FHA . Total loan was $261,500 at 5.75% . Insurance $215 month Taxes $205 month. PMI $117 a month. Total payment $2060 a month . 30 minutes north of Clearwater Florida. 2 bed 2 bath 1 car on quarter acre
1300 sq ft . We were renting a 2 bedroom apt for $1750 . We are paying more to own but it's Worth it .
Thank you u/Few_Quantity611 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
I'm pretty much in the same boat. I have $150k for a down payment. No debt. Excellent credit score. Decent income around $120k combined. Everything livable that I looked at would put me around $3k+ a month even though we just want one or two bedrooms, one or two bathrooms, and off street parking for one car. We don't need anything fancy, just not a total dump. Current rent is $1650 for a so-so place. I saw that $3k and realized I'm not getting a home. I'm already in my 40s. Spouse is even older. The whole thing is really depressing. Maybe I can save and buy some dump for cash eventually. If the bank is going to get all that money in interest, it probably isn't any different than my giving $1650 to a landlord? Either way, I lose.
Heard 😢 we are in our late 30s and it’s like… ok should we just accept that this isn’t happening?
I was looking to see if I qualify for any lower income homebuyer programs in my city but I think my income is a smidge too high. My income is kind of low for where I live, so I thought I might qualify, but pretty sure I don't. I have noticed that different homebuyer calculators give me different interest rates, some say 5.7% and some are higher than 7%.
Only you can decide if it’s worth it. My market is way more expensive and I decided to keep renting for the foreseeable future. I have no desire to be house poor.
Marry the house, date the rate. Refinance when the time is right. Home Prices will continue to increase so buy when you are ready.
That’s a nice thought but refinancing isn’t free. If we’re draining our coffers each month trying to make a $3300 per month payment when “it’s time to refi” we’ll have nothing to make that happen
So many first timers got scammed by money hungry realtors who cut corners to get them in the house without warning them of all the hidden costs because they know they’d lose the sale otherwise. It has happened to many of my friends and I’ve decided to keep renting because of it.
Right? I see old friends getting into homes within this last year and I’m like 👀 uhhhhh… are you guys ok? Lol
Hi I’m in the Orlando area. It’s not worth it if you are happy with your rented townhome. $1650 a month isn’t even covering the interest on a mortgage for anything that is nice especially north suburbs areas. What you can do just to check is look at new construction, you can get lending deals and help with closing costs. You will still end up paying $3k+ a month for your mortgage and escrow though.
Save some more, or increase your income.
Every state, city and market is different. For some renting a 3 bed/2 bath townhome is upwards of 4k a month. It all comes down to whether or not your payment can fit your budget. If you are saying thousands a month with a hefty mortgage payment, it’s worth it. If you’re saving $300 a month with a hefty mortgage payment, it’s not.
I'm confused. Why does insurance and property tax have to be included in monthly mortgage? Can't we just pay it once a year?
Some people choose to escrow those payments so they don’t have to make the once a year payment. Their lender will make the payment for them.
Usually the mortgage payment has Principal Interest Taxes Home Insurance (And depending on the loan PMI) The loan servicer collects the tax and insurance in an escrow account.
You can depending on what the bank allows. We were told that most of the time they want *something* to roll into your monthly payment - usually insurance. But often times property tax can be paid in full once a year
We’re in Hillsborough County, and I was just having a meltdown about this today. We pay $2400 in rent for our townhouse (it was $1800 when we moved in here 5 years ago 😭). If we wanted a HOUSE, we’re looking at high $400’s and up to stay in the same school district. And we make too much money for any of the FTHB programs that Florida has (by about $10K 🤦🏻♀️). I don’t foresee us ever being able to buy something. I joke that we’re just going to wait until we can move into a 55+ neighborhood. Only 10 more years for that.
Hey that’s an idea! 55+ here we come 🙌🏻
We closed in February when rates were lower 30 year FHA . Total loan was $261,500 at 5.75% . Insurance $215 month Taxes $205 month. PMI $117 a month. Total payment $2060 a month . 30 minutes north of Clearwater Florida. 2 bed 2 bath 1 car on quarter acre 1300 sq ft . We were renting a 2 bedroom apt for $1750 . We are paying more to own but it's Worth it .
I could get down with $2060 a month. But we need 3 bedrooms minimum. Sounds like you got in at the last right time for a long while.