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$50k Saved, Can I Buy a House?

K

Kenji4861

Banned
I don't know how things go. I will have about $50k saved up in 5 months which is when my contract with the apartment ends.

Is it normal for me to buy a $400k condo with this amount of money saved up? What is the "norm"? Thanks in advance
 
If you were to put 50k down on a 400k home your monthly payments would be around 2050.00 /month. I did the math with this amortization schedule calculator. I basically put in a 6% interest rate and came up with that number. Can you afford that much per month? If so, go for it!.


Peace


Lounatik
 
I would save a bit more than $50K if you are aiming for a $400K condo. It depends on what kind of interest rate you could get and how long the life of the loan would be. How much do you pay in rent now? I would try to save until you could make a downpayment such that you wouldn't have to pay a loan payment higher than your current rent.

R
 
You probably can, although your age and income and credit make it such that nobody can say for sure. I bought a house back in June with $0 down, although it was a hell of a lot less than $400k.
 
Don't forget about closing cost on a mortgage. It will cost you about 1% of the loan amount. This is in addition to your down payment. Also, unless you put down at least 20%, you will have to pay PMI (private mortgage insurance) in your monthly payment. You should try doing more research on home buying here Wells Fargo Home Mortgage. I purchased a house a year ago after a job transfer and luckily my company paid for closing cost. I spent a lot of time learning about mortgages.

Good luck!
😀
 
If there's dual income (if you have an SO to share the costs), then go for it ! Try to make 20% if you can though.
 
If you were to put 50k down on a 400k home your monthly payments would be around 2050.00 /month. (Although I get $2098.xx for the payment)

and that's just principal and interest. Add in 1/12 of your yearly property taxes and 1/12 of your homeowner's insurance plus the PMI ski2slow mentioned. And don't condos have association fees? Plus, now you get to pay ALL of the utility bills each month. Nothing comes included like it usually does with apartments.

Just some things you need to research now as 5 months is not a long time away.
 
For the record, your payments will be MUCH more than $2050 per month. I know that's what the calculator shows, but your property taxes are also taken each month and put into escrow. It's not a bad rule to allow almost .9% PER MONTH as a payment amount. In other words $400,000 * .009 = $3600!
 
If you can afford the monthly payment, and the alternative is throwing money away at an apartment for another couple of years, buy the condo.

Yes, you may have to pay PMI, but unless you're getting a great deal on your apartment, I'd rather piss money away on PMI than monthly rent.

If you can, make larger than minimum payments, then get the house reappraised when you think you have over 20% in equity and ditch the PMI.
 
Just wondering where exactly do you live that condos cost $400,000? I live in Western CT where real estate prices are through the roof, and even here you can get a pretty good condo for $250,000.

I think downpayment of 50k is enough if you can afford paying a lot every month. I'm guessing others did the calculations and with condo fees, property taxes and PMI it comes out to around $3,000 a month for a 15 year mortgage. However, I personally wouldn't stretch the length of the mortgage just to lower monthly payments.
 
I think the question here is do you NEED to buy a house.

If the answer is no, then you would be better off saving more money so you can make a bigger down payment and eventuall pay less in intrest when you do buy a house.
 
If the answer is no, then you would be better off saving more money so you can make a bigger down payment and eventuall pay less in intrest when you do buy a house.
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But in the meantime he throws money away on rent? Doesn't make any sense, unless he's getting a great deal.

Plus, real estate almost ALWAYS goes up. 2 years from now his $400K condo may cost $415K.

And interest rates are decent right now.
 
Dude it's a really screwed up world and screwed up place you live if you have that much saved and can't buy a house. Heck that's half what I gave for my house total...Sounds like you have a kicking job though.
 
Rent is not throwing your money away, though the current entitlement generation thinks it is. You have to pay for shelter, one of the most basic needs of being human. Apparently, video games and big screen TV's are more important these days 😉 🙂

Seriously, if you look around you can find a good cheap apartment. Alternatively, look in the paper for people who have a separate apartment building on their property they want to rent out, usually these are cheaper than living in apartment complexes and you will have a bit more privacy. If you live below your means, you can continue to save money without the responsibility that comes with owning a home (if you are young as has been suggested). Most young people who get into houses too early have some regrets about it. There is nothing wrong with paying rent for a couple of years until you decide where you want to live: remember, once you buy a house it will become your permanent place of residence, and is much harder to move if your community needs or income changes suddenly.

However, if you feel comfortable with the idea of owning your own house, I suggest not maxing out your mortgage payment every month. Look for a place below your means but with plenty of room. You can live there for 5-10 years while the property appreciates, and when/if you start a family you can always sell and move into a nicer house.

Hope this helps your decision, and good luck!
 
Originally posted by: PHiuR
Originally posted by: cpals
Dang... 50 grand. I want whatever job you have.
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its not that hard....he prob been saving up for a couple of years?
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A couple? You still need a good job to save up that kind of money.

I'm still in college though, so I don't have a great source of income right now...
 
my dad owns a nice 4 bedroom house in miami, for about $310k. i think the avg. for a 1 bedroom apt in NYC is $500k.


=|
 
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