How much house *did* you buy?

[Dixiechick]

I like this question. It's about the only thing we did right when we were young...

Our combined income was about $75k. We built the house ourselves (saving tons of money). With the land included (1.3 acres) we spent about $125k. We were able to finance 100% because it appraised for $160k. Now, 15 years later, it's just me living here with my son (daughter off to college) and I make more than what our combined income was back then. Even though I had to refinance to roll in the home equity after the divorce, I'm still better off now than with the original loan - about 3% less in interest and I owe alot less.

I have no plans (right now anyway) of moving. If I do, it will be to downsize from a 2400 sqft home to about 1500 sqft. And a much smaller yard too.

Dixiechick

[Ima saver]

This is outstanding. Congratulations. When did you buy your first house, if I may ask?

We bought our first house in 1966, hence the price tag of $13,000 for a brand new house. After we paid it off, we built house number two for cash. Then we moved to the mountains and again built house number 3 on the river for cash. We are now in house number four, which is our largest house at 3200 square feet, plus garage apt. Of course, it is paid for and we have not had a house payment since about 1976.

[Caoineag]

NOV 2008, Denver, CO

1 - What was your income? 90k
2 - What was the purchase price? 137k (1683 sq ft, 3br brick home)
3 - How much did you borrow? 135k FHA 15y fixed
4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why? Obviously we are in our first year so I don't have as much time perspective but we paid this mortgage and our rent for the first 3 months so it feels pretty cheap right now. I feel its just right though because we will be doing a lot of fixing up and have been doing a lot of fixing up already.

[feh]

First home:

This was in 1991...

1 - What was your income?

I'm estimating here, but between wife and I, probably around $55K

2 - What was the purchase price?

89K

3 - How much did you borrow?

Approximately 74K

4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why?

We paid it off in 10 years, which feels about right

Same question if you have moved up, or down, since.

Bought our second home 18 months ago for cash.

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[rizzmo]

1. Income is about: $145k (DINKs)
2. Purchase price: $132k
3. Amount borrowed: $105k
4. We are not stretched at all ... in fact I think compared to most people in our income range we were quite frugal in our selection.

[disneysteve]

I'm certainly not surprised by the responses so far given the folks here, and I realize the people posting are a self-selected group, but almost everyone bought well under the 3 times income rule of thumb. Nice to know that not everyone went crazy and spent far beyond their means.

[PauletteGoddard]

1 - What was your income? $71,000 (household)
2 - What was the purchase price? $212,000
3 - How much did you borrow? $184,500
4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why?
It felt like a big stretch, going from $535 a month rental to $1490 mortgage payment (including Private Mortgage Insurance), plus we had a car payment at the time, but within six months we overcame the check shock. We had never bought anything that costly, never owed that much money. It was daunting.
Now, either one of us could manage the monthly principal+interest+tax+insurance payment, which, years after the PMI was removed, is close to $1490/month, but with food and energy costs rising as well, I believe on one person's income it would be tight.

[maat55]

single income-28k 1987
price-52k
borrowed-49,400 5% down

We lived on a tight budget with two kids. Income increased to 40k a year later and gave relief.

[anastasia-b]

First and current home (purchased in 2003):

1 - What was your income? $48k plus decent yearly bonuses
2 - What was the purchase price? $260k
3 - How much did you borrow? $208k
4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why?

Yeah, it's a bit of a stretch! If I were to submit an identical mortgage application today, I'd definitely get approved for much much less. Yearly bonuses, living car-free, and having roomies for a few years allowed me to plunk down a 20% downpayment. Which left me with not much of an emergency fund. The monthly payment (P+I+T), right now, is 35% of my gross monthly income.

So I guess that I'm one of those house-poor people. The good news is that I'm not upside-down, but if I were to sell today, I'd be out a good chunk of equity. I've also got about $16k outstanding on a HELOC, used to upgrade heating, windows, electrical, etc. It's interest-only for another 7 1/2 years and interest rates are quite low on it (for now). I am chipping away at the principal each month, though. I plan on having the HELOC paid off in a couple years.

[Scanner]

1 - What was your income?

$0

2 - What was the purchase price?

$130,000

3 - How much did you borrow?

$75,000

4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why?

I don't think we knew what we were doing but it worked out.

[glock35ipsc]

First home:

1 - What was your income?
2 - What was the purchase price?
3 - How much did you borrow?
4 - Do you feel, with time, you stretched too much, were quite conservative, or it feels just right? Why?

First home:

1] $28,000 (just me at the time)
2] $39,000
3] $35,500
4] My "future" wife moved in with me in October of that year, and we were married in February the next year, so all in all it was do-able.

[Scanner]

BTW, my original loan was a NO-DOC loan. . .just showing you that not all "marginal loan products" are a disaster.

Here we are - productive, taxpaying homeowners 11 years later and 1 move and 1 refinance.

[ThriftyTexan]

First home -- 1200 sf, 3br/2ba:

1 - 40k (single, no kids)
2 - 73k 1995 in Austintacious
3 - 69k
4 - It wasn't too bad. I got roommates to help with the bills a little.

Second home -- 1400 sf 3 br/2ba:
1 - 85k combined (married, no kids)
2 - 135k 2002 in Tampa Bay area. Sold in 2008
3 - 120k
4 - The first year was OK. Second year was really bad because we bought the house brand new and the property taxes for the house kicked in. After that, it was very manageable.

We base our desired purchase price on what we want to pay monthly and not what we are told we can afford.

[red92s]

This is great info! A very helpful thread!

I'm saving for a down payment now, with no real firm horizon on making my first home purchase . . . still starting out in my career and want to be ready to relocate if required.

Current income is $60k, with $0 debt, (nearly) fully-funded 6 month EF, and 15% gross to retirement. I hope to have $10-15k ready for a DP by next summer.