Today is a pretty momentous 1 year anniversary for me. It was last year, June 1, 2009, that I made the decision to start thinking about seeing if I could maybe afford to purchase a house, or not. Yes, my crisp clear decisiveness was on full-on display!
It was a Monday, and I went over to mom's for some lunch that she had prepared. I had made the decision the night before, but I didn't tell her about it until we were almost done with the meal. I think I said something like, "Ya know mom, I think I'm gonna talk to the people at the Credit Union and see if I can afford to buy a house."
I'm sure it wasn't this way, but to my recollection she was up and out of her chair faster than I could see her move, and she was in the room on her computer looking up houses for sale. I finished eating and went in and when I got there, she already had like 7 house picked out that she thought would be good. Obviously, she was all for me buying a house.
She had been for a few years. I was never for it, because I've never been terribly responsible, I'm NOT a do-it-yourselfer, and I frankly didn't think I could afford it. But it was one year ago that I decided to at least start the process of thinking about it. Mom was way ahead of me on the idea and dragging me along. But it all worked out well in the end, cause I found out the monthly payment would be much better than I expected (I'm paying 684.79 a month).
And having made the decision on June 1st, I went to settlement on the house I'm now living in on August 30th, three months later.
It's crazy to think it's been a year already!
POLT
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2 comments:
I told Keyron I want to sock away money like crazy because you can get 3 family here in my city for around $30K or so.
Even if I do financing a $30K is cheap as hell. And the trick with any mortgage is to accelerate the hell out of. I figured out a $200K mortgage for 30 years could be brought down to 6 years by paying an extra $100 per month and applying income tax refunds at the to the mortgage for the years involved.
That's a significant saving in interest. In fact with my plan the interest/principal ratio flips about 2.5 years in.
At that rate you can then figure on $1400 to $1600 in rental income per month. You can use it to pay the tax of course but since it would be owner occupied you get the homestead exemption.
So in two or three years you've got the cash to buy ANOTHER 3 family.
I want to be a real estate mogul.
$684?!? My mortgage was almost 3 times that per month!
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