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Portrait of a Young Man as The Artist
abmann
abmann
Ghosting
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abmann From: abmann Date: April 7th, 2008 02:11 pm (UTC) (Link)
Yeah, we looked at east side homes and we could get more bang for the buck but we'd be commuting like crazy. It makes more sense for us to focus on Fitchburg or the newer areas on the south west side to keep travel cost reasonable for us both.

I don't think we quality for a WHEDA unless we use only my income, which is a possibility. I'll look into that certainly. The way the world bends backwards for home buyers is pretty crazy. I love that, given some of the calculations, i could claim the 12k interest I pay on the home for the first three years as entirely tax deductible. I'd suddenly be seeing huge tax returns for the first few years of home ownership using the Interlink mortgage plan - mostly paying interest in the first five years.

I think my credit is good enough to get less than 6% interest. And PMI seems dumb if I can scrape together 20% down. I think Interlink is biased towards people who can't though. Using their calculator, I could shave about 150 off the total monthly payment while only paying 5% down and having PMI. granted, that rate is on a smaller loan and, therefore, less house.

I think I could do pretty well with 20% down on a 200 to 250k house.

I think I'm more in awe that I could get to that easily and quickly.
alyska From: alyska Date: April 7th, 2008 02:28 pm (UTC) (Link)
...and though i know you're one of those "i know how to budget/use my money" types, banks will always give you more than you can likely afford. we refused to let our buyer's agent disclose what we'd been approved for (it was something like $235K, and our set ceiling was $180K.)

our other big thing in looking for a house was something that wasn't a cookie cutter. at the time, we were both working downtown, so east side was just more affordable (and we both bussed to work.) not being able to take the bus anymore (i work in fitchburg, jeff out in middleton) has certainly cost us more in gasoline, but it works out. that's what audio books are for! (well, and jeff likes taking his motorcycle to work when the weather's good.)

that both of us had good credit scores was very much in our favor, and qualifying for WHEDA helped out a lot, even though we basically bought near the top of the housing market. from year one to year two, the house went from $175K to $185K, and it's pretty well stayed stagnant the last year (i'm still waiting on the 2008 assessment.)

i'm just inherently against terms like "interest only" and PMI and figured that even if we couldn't make a 20% down payment, ANYTHING is better than nothing. the tax deduction for mortgage interest is nice as well. i've just got this thing about buying what i can't afford. given the opportunity, i'd probably pay cash for everything, though it's easier these days to swipe a credit card. the "OMG, DEBT!" monkey was kind of nasty for the first couple of months after we bought the manleyhouse. *grins*
abmann From: abmann Date: April 7th, 2008 02:37 pm (UTC) (Link)
I think I don't consider house debt as a problem, at least not like my credit card debt which I'm using expressly to BUILD credit to buy a house. As is, it's money I need to spend in some way to have shelter so, whatever. Credit card debit is stupid debt that I wouldn't be spending otherwise.

I think our ceiling is 250. That gets to be about 1500 a month with taxes amortized into the payment. That's assuming we use both our incomes for the loan.

What I really want to do is ensure that I can handle the mortgage payment on my own were we to buy a house which likely reduces the upper limit significantly. Fox, unfortunately, has had unstable jobs in the past which makes me frightened of getting a loan that requires her income. I'd be much happier if I could pay for it all on my own in case of disaster.

This may make things harder in general. :) Some days I think I should trust everything a little more than I do. Which is to say I should trust something at all rather than completely distrusting everything that isn't me or my brain.
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