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Forum
-> Household Management
-> Finances
amother
OP
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Wed, Mar 27 2024, 12:34 pm
We’re a family of 4 (2 daycare/playgroup, 2 yeshiva tuition) in Baltimore. We’re thinking of buying a house for 500k. As first time homeowners, we’re trying to figure out if we can swing it. We currently make about 130k combined pre-tax.
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SweetAngel
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Wed, Mar 27 2024, 12:49 pm
Depends on ur down payment…
Question is really can u make it month to month if u throw in mortgage payments.
How are you doing now?
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amother
Sunflower
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Wed, Mar 27 2024, 1:08 pm
I live in Jackson and we bought our house pre-Covid for 550, 3% interest rate
We are also a family of 4, two in yeshiva and 2 in playgroup
We make about 180k a year combined after tax and we are really really tight, barely making it at all
What’s your monthly budget? What will your mortgage payment be?
Even though it’s so tight, I am so so grateful that we own a beautiful house (which is now worth about 1.1 million)
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amother
Lightyellow
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Wed, Mar 27 2024, 1:20 pm
Same family size as you
We live in Florida where property tax is high and that is doable if you are frugal. Property tax is property cheaper where you are.
Buy price approx 500k - 20% down
Mortgage 1600ish (month) 2.75% interest
Insurance 8.5k(yr)
Property tax 11.5k (yr)
Hope this helps to factor in. Everyones expenses will vary in other areas. Chiming in as our buy price is similar to what you are asking
Pool maintenance and lawn will be a new monthly expense for you if you have either and do not plan on doing it yourself. About $200 or a bit more per month
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amother
Navyblue
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Wed, Mar 27 2024, 1:21 pm
Speak to a mortgage expert
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amother
Currant
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Wed, Mar 27 2024, 1:23 pm
amother Sunflower wrote: | I live in Jackson and we bought our house pre-Covid for 550, 3% interest rate
We are also a family of 4, two in yeshiva and 2 in playgroup
We make about 180k a year combined after tax and we are really really tight, barely making it at all
What’s your monthly budget? What will your mortgage payment be?
Even though it’s so tight, I am so so grateful that we own a beautiful house (which is now worth about 1.1 million) |
Exactly the same as you except we make $400k plus.
Our mortgage is $3k a month and we thought that was a ton pre Covid.
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amother
Chocolate
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Wed, Mar 27 2024, 4:16 pm
I also live in Baltimore. There are grants and special loans for first time home buyers. It's worthwhile to look into it.
Also in certain areas you can get interest free Chai loans (but that's only in the city and only in the park heights areas). Even if you don't get a loan from Chai, they have a whole worksheet to figure out income vs spending and what you can and can't afford. It was a huge eye opener for us.
Also county houses cost more than city houses, but their taxes and water are significantly cheaper (and probably insurance too).
Also take in account repairs. example --We had to replace our roof about 3-4 years after purchasing our house. You don't want to be on empty and not be able to pair for repairs.
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amother
Grape
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Wed, Mar 27 2024, 4:26 pm
This is what I always heard
Your rent/mortgage should be 1/4 your take home salary
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amother
Brunette
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Wed, Mar 27 2024, 4:27 pm
I’m also in Baltimore.
We were told not to spend more than three times our salary on a house.
Where are you looking to buy? Are you paying full tuition?
Taxes and water and insurance can be cheaper in the county. You also have to take in BGE, which can be $400-$600 a month. Plus appliances break, life happens.
And if you move to certain areas there are condo fees and HOA fees.
Where are you hoping to buy?
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flowerpower
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Wed, Mar 27 2024, 4:28 pm
Do you have savings for a down payment?
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amother
Brunette
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Wed, Mar 27 2024, 4:28 pm
Forgot to say-you will need to take care of the lawn year round-mow, rake, shovel etc. if you can’t do it you have to hire someone.
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amother
Magnolia
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Wed, Mar 27 2024, 4:32 pm
amother Sunflower wrote: | I live in Jackson and we bought our house pre-Covid for 550, 3% interest rate
We are also a family of 4, two in yeshiva and 2 in playgroup
We make about 180k a year combined after tax and we are really really tight, barely making it at all
What’s your monthly budget? What will your mortgage payment be?
Even though it’s so tight, I am so so grateful that we own a beautiful house (which is now worth about 1.1 million) |
Not sure if you realize but interest rates are much higher than 3% right now.
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amother
OP
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Wed, Mar 27 2024, 5:14 pm
We’re already renting a house, so are paying for lawn care, water, electricity, gas etc for a house the size that we’d buy. That said, of course there are additional costs of homeownership.
We’re going to buy in the county, not city. Our three youngest are full tuition, our oldest is not. We pay $1600/month tuition total, and $1300/month childcare (playgroup and babysitting)
Thanks for all the responses so far!
Edited to add: we have about $70k for a down payment
Last edited by amother on Wed, Mar 27 2024, 5:28 pm; edited 1 time in total
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amother
Brunette
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Wed, Mar 27 2024, 5:23 pm
Your last post wasn’t anonymous.
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amother
Sunflower
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Wed, Mar 27 2024, 5:24 pm
amother Magnolia wrote: | Not sure if you realize but interest rates are much higher than 3% right now. |
lol I am well aware
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amother
Brunette
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Wed, Mar 27 2024, 5:27 pm
I don’t want to quote you in case you want to be anonymous.
Ask a mortgage broker what to do. There are a bunch of frum ones.
Don’t use all your savings on a down payment. Have a rainy day fund.
I’ve heard it’s hard to get a mortgage these days and some places go through everything. And make sure you can stay in the house long term. Like if you’re looking at a semi and a house, it might be more worth it to spend more and get a house that will work for longer. Housing prices only go up, we bought six or seven years ago and the house basically doubled. And at the time everyone said we were crazy for paying so much. Now it’s like a joke.
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amother
OP
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Wed, Mar 27 2024, 7:30 pm
So much good advice here, thanks!! 500k and up is the going price for the area we want to live. It sounds like we might need to wait until we’re making a bit more though. Thank you
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amother
Amaryllis
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Wed, Mar 27 2024, 7:37 pm
Also consider tuition will go up as your kids get older. Will your salaries go up too? That said, buying a house is really better than paying rent. How much more will your mortgage be than your current rent. Work from there.
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amother
Tuberose
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Wed, Mar 27 2024, 9:23 pm
I’m telling you just do it. The housing prices are just going to keep going up. I’m sure you’re paying a ton renting now anyway.
We are stuck in a teeny tiny house because we can’t afford a bigger one and we are making less than you. I regret all the time that we didn’t buy a house in the area we wanted two or three years ago when the houses were juuuust out of our limit. Now they are way way out.
I would do it if I were you even if it’s unwise. I bet you can rearrange the rest of it to make it work out well enough.
It’s either that or settle for one of the houses in like the Menlo/Glen area.
Don’t wait until you’re making more. The houses will just keep getting more expensive and you’ll regret it.
That’s just my advice.
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amother
Tuberose
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Wed, Mar 27 2024, 9:33 pm
Or the alternative is to get a cheaper house on the other side of town. The high gate/simmonds/glen area. Where you can get a decent size house for much less. And you won’t be struggling to make your finances work out like you will be if you buy a $500,000 house. But I wouldn’t wait until you’re making more unless you think there’s a big chance you’ll be getting a significantly higher amount in the next couple of years.
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