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I know...I know...another housing/mortgage post.
But a girl can dream, right?
Now that I have a firm understanding of what our incomes will be after we are married, I have been trying to play with numbers to figure out what we can comfortably afford.
Our yearly income will be $110,000. His law student loan debt is around $120,000 (Half are private and half are gov't funded - 8% and 6.5%).
He has estimated that his student loan payment is going to be between $800-$900 a month.
I'm thinking that if we can get away with having PITI (the whole shabang) for a payment of $1500 a month, we would be comfy. I will be making $70,000 a year and would be able to cover this payment on my own salary alone. We could get a $200,000 mortgage for 30 years at an interest rate of 5.375% (paying points). Hopefully the rates won't skyrocket by then.
As many of you know, my father has offered to sell us his house in January 2011. There was talk of gift equity and gift money...but I would rather buy it for fair market value...and he said he would give me 6% off of that because we would not have to go through a realtor. He also said he would pitch in closing costs...and he doesn't want ANYthing in the house!
Now, when you walk into the house...it does look like circa 1995...but we can replace furniture over time. Either way - it is a huge savings to have a furnished house.
I think this is our best bet. It is a 2,500 sq. ft. (including finished basement) with 4 bedrooms and 2 1/2 baths. It's in a very favorable, mature neighborhood in a great school district.
The value of the house is probably a little over $300,000. By January 2011, we will have about $82,000 put away...so with a huge downpayment...we could make it with a mortgage of $200,000 - especially if we wait a few more months before buying it so we have a good emergency fund in place. I think this should be our plan of action...because this could be a long term home and will serve us well. My fiance likes the house too.
Here is a pic:
But a girl can dream, right?
Now that I have a firm understanding of what our incomes will be after we are married, I have been trying to play with numbers to figure out what we can comfortably afford.
Our yearly income will be $110,000. His law student loan debt is around $120,000 (Half are private and half are gov't funded - 8% and 6.5%).
He has estimated that his student loan payment is going to be between $800-$900 a month.
I'm thinking that if we can get away with having PITI (the whole shabang) for a payment of $1500 a month, we would be comfy. I will be making $70,000 a year and would be able to cover this payment on my own salary alone. We could get a $200,000 mortgage for 30 years at an interest rate of 5.375% (paying points). Hopefully the rates won't skyrocket by then.
As many of you know, my father has offered to sell us his house in January 2011. There was talk of gift equity and gift money...but I would rather buy it for fair market value...and he said he would give me 6% off of that because we would not have to go through a realtor. He also said he would pitch in closing costs...and he doesn't want ANYthing in the house!
Now, when you walk into the house...it does look like circa 1995...but we can replace furniture over time. Either way - it is a huge savings to have a furnished house.
I think this is our best bet. It is a 2,500 sq. ft. (including finished basement) with 4 bedrooms and 2 1/2 baths. It's in a very favorable, mature neighborhood in a great school district.
The value of the house is probably a little over $300,000. By January 2011, we will have about $82,000 put away...so with a huge downpayment...we could make it with a mortgage of $200,000 - especially if we wait a few more months before buying it so we have a good emergency fund in place. I think this should be our plan of action...because this could be a long term home and will serve us well. My fiance likes the house too.
Here is a pic:
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