Is it possible for me to buy this house?

[Anonymous]

OP again. I think we could sell our current house for $500k. The agent who sells most of the houses in our neighborhood will take 2% instead of 3% so %% total commission. If we sell at $500k, that would be $100k more than we owe minus a $25k commission, so $75k. We could scrape together another $25k without dipping into retirement, so $100k for a DP. Assuming we paid full price for the house that has been sitting for two months, which we'd try not to, we could put 13% down. But it's my understanding that there's no point in putting down more than 10% unless you can put down 20%. It's definitely not the soundest financial move, but we want to move to the neighborhood where this house is in the next two years, and this house is just so perfect for us. I'm definitely thinking with my heart, not my head. We probably won't try it, but I've enjoyed fantasizing about it this afternoon.

[Anonymous]

Anonymous wrote:OP again. I think we could sell our current house for $500k. The agent who sells most of the houses in our neighborhood will take 2% instead of 3% so %% total commission. If we sell at $500k, that would be $100k more than we owe minus a $25k commission, so $75k. We could scrape together another $25k without dipping into retirement, so $100k for a DP. Assuming we paid full price for the house that has been sitting for two months, which we'd try not to, we could put 13% down. But it's my understanding that there's no point in putting down more than 10% unless you can put down 20%. It's definitely not the soundest financial move, but we want to move to the neighborhood where this house is in the next two years, and this house is just so perfect for us. I'm definitely thinking with my heart, not my head. We probably won't try it, but I've enjoyed fantasizing about it this afternoon.

Meant to say "5% total commission"

[Anonymous]

Anonymous wrote:OP again. I think we could sell our current house for $500k. The agent who sells most of the houses in our neighborhood will take 2% instead of 3% so %% total commission. If we sell at $500k, that would be $100k more than we owe minus a $25k commission, so $75k. We could scrape together another $25k without dipping into retirement, so $100k for a DP. Assuming we paid full price for the house that has been sitting for two months, which we'd try not to, we could put 13% down. But it's my understanding that there's no point in putting down more than 10% unless you can put down 20%. It's definitely not the soundest financial move, but we want to move to the neighborhood where this house is in the next two years, and this house is just so perfect for us. I'm definitely thinking with my heart, not my head. We probably won't try it, but I've enjoyed fantasizing about it this afternoon.

It could work. It's so uncommon to find a house that I really love. If you are like me, go for it.

[Anonymous]

OP, you CAN do it. Whether or not you and spouse have the appetite for it all is a different question. Maybe what you need to calculate is "how long can i carry two mortgages?"

[Anonymous]

We have a HHI of $250k and owned a condo. We refinanced the condo, took about $160k in equity, and used it for the downpayment for a $780k house. We rent out the condo for a small profit.

Can you easily rent out your house and make a profit?

[Anonymous]

Use a rebate realtor to buy. That's an extra 2% ($15K) in your pocket.

[Anonymous]

If you have to ask, the answer is no.

[Anonymous]

Anonymous wrote:Use a rebate realtor to buy. That's an extra 2% ($15K) in your pocket.

ie, a redfin realtor or?

[Anonymous]

Any chance you could wait till you're able to put down 20%, ie $150k? Cos' you're going to take a hit (every month going forward) due to mortgage insurance if you put down less than 20%.

You could accelerate your savings but limiting 401k contributions, say for 3-6 months, so that you're in a position to purchase the house, once house is bought you can make up for the lost 401k contributions later in the year.

Assuming that your HHi of 300k will hold for the next 3-5 years could swing it. Best of luck.

[Anonymous]

Anonymous wrote:Any chance you could wait till you're able to put down 20%, ie $150k? Cos' you're going to take a hit (every month going forward) due to mortgage insurance if you put down less than 20%.

You could accelerate your savings but limiting 401k contributions, say for 3-6 months, so that you're in a position to purchase the house, once house is bought you can make up for the lost 401k contributions later in the year.

Assuming that your HHi of 300k will hold for the next 3-5 years could swing it. Best of luck.

...meant to say that "you could swing it"

[Anonymous]

Anonymous wrote:

Anonymous wrote:Use a rebate realtor to buy. That's an extra 2% ($15K) in your pocket.

ie, a redfin realtor or?

Eh, you could but they lowered their rebate a lot. Glass House and iagent offer 2%.

[Anonymous]

Ask you parents for a down payment.