Did you put a downpayment on your house?

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My husband and I are in the process of buying a new house with no downpayment. Needless to say the monthly payments are quite hefty.

We’d like to know how other people can come up with 10, 15 and 20K+ for a downpayment on a house. My husband makes $ 75K/yr and I’m currently staying home with our new baby. We are 30 & 31 and pay $ 1,100/month for rent. My husband has no car payment (anymore) and I have a car with a $ 270/month payment. I don’t think we’re living in excess of our means but do not understand how it is possible to come up with thousands and thousands of dollars.

Are we still too young to have $ 20K stashed away somewhere or are there people our age that actually have that much saved (sans money from wealthy parents)? Are people who DO have that much money for a downpayment in their 40’s? I just want to know how other people do it. We’d like to buy a really nice house down the road ($ 300-$ 400K) but it seems impossible!

  1. Reply
    November 10, 2011 at 3:10 am

    If you actually stop and write down your monthly spending vs. your monthly income you will be surprised how much money you probably have left over for savings but don’t actually save. You need one of you to actually take the extra and put it in a savings account and do it weekly. You will get use to not having the extra and won’t miss it. Actually buy $ 500 CD’s that you can’t touch without loosing the interest. You are right though, it does take time to save. It all depends upon when you start saving as to how old you actually are.

  2. Reply
    Jen S.
    November 10, 2011 at 3:53 am

    Well, my fiance and I are 26 & 24 and we just purchased a $ 340K townhouse. We didn’t have a downpayment either, so our mortgage is about $ 2,000/month….but considering rental prices in our area, that is manageable. I know a lot of two bedroom apts cost about $ 1,600/month or more so in a few years we will still be paying that same amount & hopefully be making more $ $ . Together we make over $ 100K per year, but we are trying & barely succeeding at saving for our wedding :o) Anyways…many people buy homes nowadays w/o downpayments, we just paid our closing costs…which were about $ 13K altogether. Not putting a downpayment simply means you will have a higher monthly payment, so as long as its manageable then its fine not to have a down payment.

    As far as being able to save that much…some people invest their $ in the stock market or bonds, some have 401K retirement savings, or you can also put your money into an ING orange savings acct (google it) & it is a high yield savings that accrues interest at a higer rate than regular savings accounts – there is no minimum balance for this acct. You could also put ur money into a CD or money market acct, but the problem with that is you usually need a minimum of at least a few thousand. Good luck!

  3. Reply
    November 10, 2011 at 4:47 am

    What the first poster said, you’d be surprised at how much money you waste, especially with a newborn. Lack of sleep does that. But, yeah, it’s a matter of budgeting and saving, and that takes time. As a mortgage broker, I can tell you that even a 5% down payment will make a huge difference over going 100% on the financing, not just in rate, but in MI costs, which is another thing you have to look at. But if your credit score is high enough, there are some ways around MI. That’s a story for later, though. Right now, work out a budget, but keep in mind, with a newborn, there’s never enough money, never enough time, never enough sleep. I’ll leave the “never enough sex” part out until you’ve caught up on sleep.

  4. Reply
    November 10, 2011 at 5:28 am

    It’s pretty simple once you sit down and figure out how much you want to save within a given period of time. Saving just 20% of your husbands pre-tax income is $ 15,000 a year. Figure 30% for income taxes and stuff that leaves you $ 52,500 clear a year for food (not eating out!), rent and savings. Take a hard look at what you really need, this includes, cell phone(s), cable tv, cable modem, netflix, having a 2nd car ( loan pymt, gas and insurance ) ect. Once you par down the non-essentials, you’ll have a figure that’s the bare minimum for you to live, the difference between say 52500 and this number is the potential amount you can save, it’s up to you to decided how lean you want to run the family. Once you come up with an annual savings amount given you’ve culled away other expenses, have this amount divided by the number of pay checks per year direct deposited into a money market account. The only thing left to do is sit back and watch the money pile up. Of course if you have CC debts, point this new money ‘hose’ at that fire first.

    Good Luck!

  5. Reply
    November 10, 2011 at 6:26 am

    Establish a budget and budget into that a savings plan. When your lease is nearly up then contact a good REALTOR to help you find something that is within your means. Don’t BUY the NEW house!!! Find a resale! You will pay full retail to a builder but you can often find more affordable, good and nearly new housing at much better prices.

    The REALTOR should be working for you and should not be showing you only his or her own listings. Be patient, plan, save money. One of the other posts was also good — you may be spending money needlessly on eating out and buying things that you can do without.

    Homeownership is as much about self discipline as about money.

  6. Reply
    November 10, 2011 at 6:36 am

    get a loan from a bank to buy a house if your paying that much on rent you could be buying a home ……. call around and talk to different banks… is your credit good ? is it your first time to buy a home ? you can get a first time home buyer rate sometimes you don’t need anything down or low down -payment

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