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Why is money always the bad???

Anonymous
Posted by Anonymous
  • 21 Replies

We just put in an offer for a house. We calculated it would be the same as what we rent for a 3 three bedroom apartment. Well, hubs finds out today he miscalculated and it's going to be $200 more than what we budgeted. I'm a full time working mom and he's a full time worker as well. We do plan on another kid and I would like to maybe stay home IF possible.

But with it being $200 over what we planned......I may have to keep working. This is THE house for us. I want it so bad. This will be our home that our kids grow up in. Would you do it?? Or would you back out and find something else (that could take forever?)

Posted by Anonymous on May. 7, 2013 at 1:01 PM
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Replies (1-10):
AMCMSM
by Gold Member on May. 7, 2013 at 1:09 PM
2 moms liked this

 I we could not absorb and extra $200 a month easily I would not even think of quitting my job and having another child. That is a pretty narrow margin to break you. With a house you can easily drop that on a minor repair.

jessi2girls
by Ruby Member on May. 7, 2013 at 1:12 PM

Have you also calculated other expenses... such as property taxes, home repairs, utilities that you may not have had to pay while renting?


Anonymous
by Anonymous on May. 7, 2013 at 1:14 PM

Was he adding in the cost of insurance, and interest when figuring out the monthly cost, as well as yearly taxes (which come out of your escrow)? 

You need to look for a house that costs no more than 30% of your income total (including taxes, insurance, interest). And then you need to consider that taxes raise, and insurance can raise. Which means what you pay now might not be what you pay in a month. It might go up. It could also go down. It could stay the same. 

If your escrow does not have enough to cover the years costs (insurance, tax, house payment), you will get a bill to cover what was not covered, and they raise your payment. 

If the $200 is a deal breaker, you need to be looking at a different house. There are a lot of expenses first time house buyers are not fully aware of. 

Anonymous
by Anonymous - Original Poster on May. 7, 2013 at 1:22 PM

 

I think that was calculated with exactly what we would be paying for everything ............. I know some of the utilites will go up and some will go down. But if we can get it at the right rate then we should be ok...

it's just so stressful ........ I've owned a home before and so has he. This is our first time together.

Quoting Anonymous:

Was he adding in the cost of insurance, and interest when figuring out the monthly cost, as well as yearly taxes (which come out of your escrow)? 

You need to look for a house that costs no more than 30% of your income total (including taxes, insurance, interest). And then you need to consider that taxes raise, and insurance can raise. Which means what you pay now might not be what you pay in a month. It might go up. It could also go down. It could stay the same. 

If your escrow does not have enough to cover the years costs (insurance, tax, house payment), you will get a bill to cover what was not covered, and they raise your payment. 

If the $200 is a deal breaker, you need to be looking at a different house. There are a lot of expenses first time house buyers are not fully aware of. 


 

Anonymous
by Anonymous - Original Poster on May. 7, 2013 at 1:28 PM

 

Yea........ as far as repairs the house is PERFECT. We are getting the home inspection done. The utilites shouldn't be too much more. Everything in the house is new and updated. Thank goodness.

Quoting jessi2girls:

Have you also calculated other expenses... such as property taxes, home repairs, utilities that you may not have had to pay while renting?



 

SterlingHeart
by on May. 7, 2013 at 1:29 PM

buy it and keep working for a few years --- then re-finance it down to get your budget in place and then stay home :) 

Anonymous
by Anonymous on May. 7, 2013 at 1:30 PM

Did you not get preapproved before making an offer? We knew roughly what our payment would be (including taxes and insurance) because we had already talked to our lender. 

Anonymous
by Anonymous - Original Poster on May. 7, 2013 at 1:37 PM

 Well that sounds good :-)


Quoting SterlingHeart:

buy it and keep working for a few years --- then re-finance it down to get your budget in place and then stay home :) 


 

Anonymous
by Anonymous - Original Poster on May. 7, 2013 at 1:38 PM

 No and we should have but he already talked to someone about it...........

We had a rough estimate but that didn't include PMI. I just want to know if it will be worth it to pay the extra for a few years.. I mean I know our rent will just keep going up every year like it always does.


Quoting Anonymous:

Did you not get preapproved before making an offer? We knew roughly what our payment would be (including taxes and insurance) because we had already talked to our lender. 


 

SterlingHeart
by on May. 7, 2013 at 1:39 PM

and by re-financing you can get your interest back up to keep the write off high... i don't know about you but i need the write offs cause we make way to much damn money! 

Quoting Anonymous:

 Well that sounds good :-)


Quoting SterlingHeart:

buy it and keep working for a few years --- then re-finance it down to get your budget in place and then stay home :) 




SterlingHeart

"these ramblings courtesy of a mom over 40"

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