Hi Personal Finance Fam,
I love the advice people get here and now I’m in the position to where I’m at a crossroads. Basically, I am 29, have a wife and 2 kids, and we currently rent. We want to stop renting for a variety of reasons, but also want to make a purchase that is financially responsible. We found a townhome for $129k, 3 beds, 1 ½ baths, garage, $0 HOA, and have some money tucked away for a 3% down payment if we use the FHA loan. Here’s our current expenses: I bring home ~$2800/mo after taxes:
*Rent: $965 for 2 beds/1bath (utilities included)
*Car Payment: $330/mo
*Insurance: $95
*Phones: $70
*Internet: $60
*Credit Cards: $100 (soon to be ~$30 once I pay off the full balance on my card)
*Food: ~$500/mo
*Misc: (entertainment: Netflix, etc.) ~20/mo
We typically have a few hundred dollars to tuck away every month because we live relatively modest. We buy we plan on using the FHA loan with 3.5% down and a 30-year mortgage (my credit score is 710 if that helps any). I know that doesn’t include utilities, renter’s insurance, or property tax ($159/mo), but I’m hoping we’d break even. An important thing to note is that our landlord raised our rent by $15 when we renewed our lease, so I have reason to believe he’d do the same thing if we renew again.
Is this doable?
Thanks!
Edit: Formatting
Submitted February 01, 2018 at 11:42AM by Throwawayrav18 http://ift.tt/2FAyvGF
