Just gonna lay it all out:
Husband (34m) and I (32F) want to buy a new construction home. He's a tradesman who makes ~$80-90k/yr, no student loans. I'm a nurse and making $75k/yr, paid my student loans off. We live in the Midwest, suburbs of Chicago. Currently own a home we're expecting to make about $100k off when it sells. Bought this house right before COVID for $168k, it's now valued at roughly $270k. We were very lucky with a 4.1APR which is so hard to let go of, but currently pay PMI. His 401K has approx $80k and mine is sitting only around $40k. We contribute 10% each paycheck and our companies match up to 6%.
Current mortgage is $1500/mo which includes HOA, utilities and insurances are about an additional $500, groceries per month about $600 (we splurge here, we spend more on groceries because we buy organic/grass fed beef/etc. My car payment is $300 (I only owe $3k on the loan). We'll say another $200 for gasoline, cat food/litter, etc. He bought his car outright a few months ago (-$30k). Maybe $300 a month on dates or activities / dining. We have zero credit card debt. No kids. Credit scores 800+.
So per month, after taxes, we net about $8k and spend about $3.5k. The new house is $400k, construction company is giving us $15k incentive to spend on closing costs, upgrades, or to buy down the APR. We'd choose to buy down the APR and were told it would come down from 6.9% to approx 5.6% (estimate since closing won't be until April.) We'd use $80k from the sale of our home to make the down payment, which is exactly 20%, and we'd retain the rest (hopefully ~$20k.) We've been told to expect a mortgage payment of roughly $2900/mo.
Here's where things get not so great. They wanted $12k up front to secure the plot of land we wanted, which will go towards closing costs later. We borrowed this money from my MIL who is amazing and doesn't expect any interest and doesn't want it back until we sell our house.
As of right this second, we only have about $4k in savings. We are trying really hard to build that back up but I feel like that's just not enough. I'm pretty anxious about the whole thing and just looking for outside perspectives. TIA
Submitted September 15, 2023 at 10:02PM by Digital_Disimpaction https://ift.tt/LyDZlIw
