In the last couple of days i've had an offer accepted on a house costing $475,000 (CAD). My salary is $125,000 a year and I have $150,000 in savings. I'd like to avoid PMI so i'm looking to put down $95,000 as a down payment (20%). I've been quoted for an equivalent mortgage for this of ~3% equaling about ~$1750 per month in mortgage payments which seems ok to me.
I have no other debt, other than monthly credit cards which I pay off in full each month, so i feel like i'm financially ready for all of this but as I write this at 5:30am I'm finding myself feeling nervous about what i'm taking on and not sleeping great these last few nights, this is my first home I'm buying and I've run the numbers and know that after taxes I earn $6000 a month, so even with mortgage, taxes, insurance, maintenance cost probably taking my monthly payment to lets say another $1000 a month (equaling $2750 per month for all of this) I should still be 'comfortable' in affording this right?
I know the first year will likely be a little tough, with random costs like closing fees, and new furniture etc eating in to savings further but what do you think of my situation, am I taking on WAY too much here, I know the property is quite expensive for my first place but the apartment is in a great area, I think is only going to appreciate in value over time and reselling if the worst happens quite quickly shouldn't be a problem.
I think the thing that's scaring me is i'm about to go from being quite 'cash rich' with lots of savings and never having to worry about living month to month as I would earn $6000 a month net, spend $1400 on rent and have literally $3-4k at the end of the month to save/do nothing with to now handing over $100,000 to a bank, saving much less from now on each month and losing the flexibility of renting. I do want to settle in to my own place though, i've been renting for over 13 years since I was 18 and feel ready to make the change.
Is this all just first time buyer nerves?
Submitted August 03, 2017 at 05:40AM by d36ryGph http://ift.tt/2woqfVx
