house affordable for us?
February 14, 2012 5:01 PM Subscribe
Can we afford the house?
posted by ljs30 to home & garden (56 answers total) 3 users marked this as a favorite
My wife and I having been searching for a home for almost a year now. We've found that in order to buy a house in a safer area with decent schools we need to spend about 355K or so and even that doesn't get us far in our city. Our income varies because I freelance. But on average we make 75-110K combined income. Currently we have about 80K in savings. Right now our rent is $1650 and we have absolutely no problem paying it. If we buy a house for 355K we'll be at about 2500 per month which includes mortgage, taxes, insurance, and PMI since we're buying FHA. Some areas that we know we can save money right off the bat....the house would be in a location that has easy access to public transportation which my wife would use in place of driving saving us about $250 a month on gas. We can also save by not eating out as much and not go to the movies as much. We probably spend about $400 per month eating out and seeing movies. We enjoy it, but could live with out it or less of it. We plan on having kids as well. My question is, can we realistically afford this? We're afraid that if we don't buy now, we'll miss out on the great interest rates and home prices. Even if we make more money in 3-5 years from now...interests rates will have gone up and we won't be in any different of a situation. But of course there's always fear of losing a job, getting sick, or something major breaks in the house. Any advice here would be great.