I am thinking of the buying a house, but after paying off mortgage, util. food, etc. I'll have about 200 dollars left at the end of the month for savings or emergency fund. Should I wait until I have save up a bigger down payment, so I'll pay less on the mortgage?
2007-01-22 06:59:42 · 5 answers · asked by jean 4 in Business & Finance ➔ Renting & Real Estate
I think it all depends on your ability to cut back on your lifestyle. If you are willing and able to cut back on the things that are not necessary and are still able to have a couple of hundred dollars to put into savings, you are better off than most people. Will you still have a cushion in your savings after making the down payment? If you are depleting your savings to make the downpayment, you may want to examine how comfortable you are in making that decision... I'm guessing that if you are asking this question that you may have some reservations. If you are having reservations it is best to not jump in and buy a house, you won't be able to turn back as easily as it was to sign the paperwork to buy it.
2007-01-22 10:11:01 · answer #1 · answered by amyann16 3 · 0⤊ 0⤋
You should wait until you save up money for an emergency fund instead of a bigger down payment. For every $1000 you give towards the down payment, it only knocks of around $8 per month.
I typically live paycheck to paycheck. After all my expenses, I have only $200 left that I put in my savings. Mostly because I didn't start out with an emergency fund, so all those unexpected expenses ended up on a credit cards, so now I'm trying to get those down.
2007-01-22 15:36:48 · answer #2 · answered by sammie 4 · 0⤊ 0⤋
Well, we never have any money left because of the mortgage, car payments, utilities, groceries, etc. etc. Also the house needs repairs a lot, plus taxes and ins. on house. We had to get our furnace fixed last week and it was $400.00. The expenses never end!
2007-01-22 15:05:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You should not buy a home that costs more than 20% of your income per month in mortgage. This home appears out of your budget.
2007-01-22 15:04:47 · answer #4 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
don't do it you do not have enough residual income left over at the end of the month if anything occurs.
2007-01-22 15:23:03 · answer #5 · answered by miztiffany 3 · 0⤊ 0⤋