We're buying a house!

[MrWolf]

Congrats. Lot of good advise. If you can add extra to each payment and specify it is applied to the principal. If you have PMI, get rid of it ASAP. Your handy so will save a lot on repairs which will happen. Good luck

[Arisaka99]

Thanks everyone for the advise!

I just heard back from the realtor and WE GOT IT!

Now... to build a loading bench in the basement...

[1911sw45]

Woohooo congrats

[dangitgriff]

Congrats.
At the end of the year, read the info on your statement about how much property tax you paid.
Then try to figure out where it went.

It'll make ya a LIBERTARIAN.

Fixed that last statement for ya, Ed!
—Griff

[dverna]

Reality….The bank owns the house and lets you live there until you pay it off.

It is the only item one should go into debt for as normally a house will appreciate in value.

Congratulations and are smart to pay a mortgage instead of rent. Even smarter for getting a house with a basement.

[6bg6ga]

congrats and good luck to you

[dangitgriff]

Congrats on the purchase of your new house...now you get to make it your HOME.
A man can get a lot of satisfaction building a family home. Working on it together with your wife will make for some good memories.
R/Griff

[Reverend Al]

I wholeheartedly agree with the idea of making extra mortgage payments paid against the principle outside of your regular payments. As a rule of thumb every dollar that you pay against the principle outside of your regular mortgage payments also saves you one dollar of future interest. When we still had a mortgage on our house my wife and I always set a bit aside every month to make additional, non-scheduled payments two to three times per year. Most mortgages allow extra payments without any penalty up to a certain percentage of the balance of the remaining owed mortgage. (Making additional payments also helps to strengthen your credit rating with the bank.) Making extra payments shortened the term of our mortgage by several years and saved us a ton of interest. We went without many things we would have liked to have had to do it, but it is a wonderful thing for both of us now being retired without having a mortgage hanging over our heads. A house is also an excellent retirement investment and eventually when you get old enough that you feel you need to downsize (we're getting close to that point now) your house should be worth far more than you originally paid for it. After 21 years our house is now worth about 2 1/2 times the original purchase price on our current local market. It's a win / win. Everything you invest buys you growing equity in the property value and eventually it becomes the best retirement investment that you could possibly make. (As a realtor friend of mine has always said: "The only thing that they're not making any more of is dirt!, so it just keeps going up in value.")

Congratulations on your first house ... enjoy it!

[lightman]

Congratulations! Buying your first home is a big accomplishment. I'm all for paying extra in order to get it payed off sooner but don't neglect having some cash set aside for emergencies. Things break. Houses, cars, appliances, ect all need attention, sooner or later.

[frkelly74]

The last two home we have bought to live in were cash deal/ fixer uppers. One was actually off of Craigs list and that was not the worst one. So far we have owned 11 houses but have only actually lived in 7 of them. We actually made money from 3 or 4 of them if you don't count labor. We now have two homes in Michigan and keep busy fixing them up. The one we live in now was going to be the last fixer upper but I am looking again, in Florida , for the last, last one. Plans keep changing. Anyway, God bless you in your new abode!

[nvbirdman]

When I bought my first house I was thirty-one years old, and a thirty year mortgage was literally a lifetime of payments, but time has a way of moving on and it will eventually get paid off, and then you can feel sorry for the people that have always rented and always will rent. Too bad they weren't as smart as you when they were younger.

[dangitgriff]

Just a thought:
Starting/owning your own business is how the wealthy got that way, not through owning real estate (unless that IS your business model).
Sadly, the 80% of Americans who claim most of their net worth in their homes are subjected to market manipulation by the Federal Reserve and government, which is exactly why the richest 20% of Americans have assets diversified away from real estate.
There will soon be an oversupply of homes available on the market when the government finally admits we are in a recession. Anybody here remember the interest rates from the 1980’s? Yep, that.
R/Griff

[Duckiller]

Don't worry about needing a bigger house. Wife and I raised two boys and a girl in a 1200 square foot house. We do have a big back yard that they could wander about and get their mids straight. They are now 40, 38 and 34. #1 son (40) is getting married on Labor day weekend. Siblings and I will be there. Wife passed away last October. I am ready to leave So. Cal but children don't want me to sell the house until I am sure I can endure Pacific Northwest weather. Also they want to use it when they need to get away from the rain and clouds. Will get my affairs in order so I can move either this fall or next spring. Buying this house and having a secure place to raise our children was probably one of the best decisions my wife and I made. Good luck with your new house.

[bob208]

any property ? nothing like setting up and shooting off your back porch. or having a 100 yd. range up in the field.