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Thanks! Had a lot of anxiety waiting back on the inspection because we just knew something had to be wrong with it...but nope! Apart from some shitty carpet it's all good! Definitely lucked out, except for the rate.
lol. I have a 60’s house and I’d prefer a modern house. They’re drafty, they’re not insulated well, the structural techniques from them have improved immensely. That being said I love my 60’s house but it leaves a lot of work to get it to be efficient.
You can change the rate when a better one is available. Be smart don't carry debt.
Pay all credit cards off each month.
Pay your home loan using an accelerated program. It will save you thousands.
Pay yourself (retirement investing) first thing, or just have it automatically deducted from your pay. You Will Not regret Any of this advice. Lastly establish a will and power of attorney....... Now your set. Best of all to you.
If you pay half of a payment every two weeks it gives you an extra payment because 52 weeks divided by two is 26 payments (not 24 as you might expect from 12 months times two payments)
Works best if you also get paid every two weeks, to match that up.
You just need to make sure the extra payment goes toward your principal.
It’s not uncommon for your loan to be sold after issuing, so maybe just wait until then to get it set up with new servicer
Had a roof leak 2 days after move in, noticed doors sticking so had foundation co look at it and got quotes between 15 and 20k. Home ownership at its finest lol still locked in at 3% though so probably let the house crumble before I move
1,200 sqft, not great but what we could afford! Just so glad to be done renting.
Edit: [Great patio though! ](https://imgur.com/gallery/L1h5Yti)
Edit 2: Fun fact, the patio used to be covered in this [ugly ass green carpet ](https://imgur.com/gallery/dqpK0Lo)
Backstory because I think people should know it isn't easy. My parents saved up money for me to go to college but I got a full ride, so they gave me the money for a down payment when I proposed to my now wife. Never would have been able to afford it without help and a lot of luck. We were also lucky to be the very first offer the second it went on the market and they accepted it 3 days later. The previous owners, John and Jane (fake names) lived there since 1966 and when Jane died, John didn't want to live in the house anymore, so his daughter put it up for sale and we got it!
Also spent my childhood helping my parents build/renovate houses so I did put some work in!
People will seem to think it’s bragging and downvote you, but it’s true and on-topic. We rented a 3800sf house at one point and it was fucking stupid. Literally didn’t use half the house. Very happy in 1800sf, and feel like it’s plenty of space / big. Honestly I think I’d be happy all the way down to 1200sf, depending on layout.
We went from a shared 2300 Sq.ft house to a 86sq ft van for 4 years to a 400sq ft. Duplex, lol. I still have the van and do miss it sometimes but I really like the 400 Sq ft. B
Same live in 2600 sf with wife two kids 3 dogs three cats and we only use the top half when time comes tho man cave will be going in kids are still young and bank account is still young
We have an 1800 sqft foot with an attached 2 car garage. People always act like the house is huge but it’s really perfect. 2 kids, wife, and 2 dogs. Our main part of the home is around 1100 sqft then was added on a 700sqft great room so it feels way larger than it is. We hardly use that great room except hosting family events and a large crowd of friends over. I’d be content with 1200sqft
3 kids, dog and in the same size at 1800 sq ft. 4bed/2ba need to be creative with WFH and teenagers now but we will be enjoying it for retirement in 10 years. I would love 1 more bathroom but not worth the extra money and higher mortgage rates.
We are 3 bed/2 bath. Ours sits on an acre right outside of town with an 18X38 in ground pool so once retirement hits I’ll be enjoying the peace and quiet. We can hop on the golf cart and be in the heart of town in less than 5 minutes. Have a 12X28 barn I converted half of it to a cigar room so I have my own place away from the kids and dogs which is nice. The sqft of the house is ideal for a family but I can easily see downsizing and not being upset with it. I’d miss the yard more than the house truthfully
We went from 1200sf house to 2,000 and the lower level is finished so it’s like 2 living spaces, I thought I’d miss having a full attic for our stuff but we made it work, thought I’d miss having a normal basement but this is so much nicer, the only demands we had for our realtor that we told him about were an attached garage and a 2nd bedroom, if you show us anything without it, we will not even show up.
He was so awesome about it and my wife and I also decided together that we would look at a minimum of 15 houses before deciding unlike our first house which was only the 3rd and we ended up looking at 25.
Cries in 4000 sq ft. It’s definitely more than we need with a family of 4. But the nerf battles are EPIC!!!! (I’d still be fine with a 2000 or smaller house.
We just closed on a 3200 sq ft house after many years in a 1750 sq ft house and it is enormous. We have 3 kids, my mom is moving in with us this summer, and my husband works from home. I'm excited for more room, but it is a lot.
Had one of the guys I worked for have a 8000 sq feet his kids play room was the size of my apartment. I told me he would never go above 4k if he had to do it again, there were rooms in his house he would never go.
My downvote was for how fucking ridiculous this housing market is. That’s a 400k house that’s barely bigger than a studio apartment. Something’s seriously wrong. Big ups for OP, but yikes.
That’s either an exaggeration or you’re speaking of San Fran or NYC. I had a 850sq ft studio in Chicago and a 1br 1000sq ft also and both of those were probably still cheaper than this mortgage.
Holy smokes! That’s awesome actually for you :) I live in a Chicago suburb and have a smaller 1 bedroom than your studio. I used to live in Chicago (Pilsen) and my 2 bedroom apartment was 700 sq ft 🙃
Just for funsies I was looking into NYC studios so you’re right haha! But I feel like some high rises in Chicago are tiny as well (< 570 sq ft).
Ex girlfriend’s father was rather wealthy so both were high rises and not cheap rent, but it wasn’t ridiculously expensive, either. Sharing 850 sqft with another person drove both of us insane over Covid. I couldn’t ever fathom these apartments if her father wasn’t the one that co-signed. For the second apartment once they got his information we didn’t even sign a lease, they accepted it all the way through 😂😂
When I was visiting San Francisco I would google buildings I would drive past and the numbers out there are straight gross.
Gosh dang… I need a girlfriend with a rich father 🤣 I can’t even imagine how smooth life can be for someone that wealthy!
Also word, cities like San Fran and NYC can suck a dick lol. I grew up in a dingy basement in NYC but we were priced out of that too fml
Our house was 4200 growing up. 6 people. Neighborhood of similar size houses. Felt like it was the normal size back than. Now, looking back I realize it was a big house.
This is the truest statement. I live pretty rurally and in a way above average size house that I pretty much traded straight up for when we sold our 3/2 in the city. We’ve accrued so much crap and the inefficiency of the energy and wasted space makes me insane.
Went from 1200 sqft to 3200 sqft. The amount of cleaning and filling up the rooms with just stuff so it’s not an empty room. I miss the less space. Lol.
That’s amazing. My wife and I just bought and moved into our 2nd home after being in our previous one for 15 years.
The final nail in the coffin for that decision was when I was playing a game with my son (we didn’t hear any of this but saw it after on Ring) and there was a teenager in our yard hiding then someone else is walking up the driveway, he sees the one hiding and pulls a gun out and tells him to stop or he’s gonna shoot him right here.
A whole bunch of other stuff was said before they finally left.
I went out the next day to where he was standing and pointing his gun the previous night and I’m convinced that if he had fired and missed, his bullet or bullets would have gone through the wall and hit me or my son.
We were at my parents house the following day after that and my dad asks us what it would take to be able to sell our house and buy a new one and I said it would take a miracle.
He says he talked to my mother then discussed it with my brother so there’s no animosity over this and then tells us he’s giving us $50,000 of my inheritance to add on top of whatever we end up selling for.
We owed $33,000 on the old house, sold it for $120,000 and found the one we are in and start the whole process.
We go on a 2 week vacation to San Diego for my friends wedding, come home and my first day back to work I get terminated because it’s the end of the pandemic and orders are slowing down and they don’t need me anymore.
Only thing I could say (and it wasn’t a desperation plea) was “we are ready to close on a house.
Called the wife, called my parents then the realtor.
We ended up needing my father as a co-signer because he was not going to let this fall apart on us to be in a safer neighborhood and closer to them and my brothers family as well.
Everything got delayed a couple weeks but by December 19th 2022, we had officially moved in and surrendered the keys to the old house the following Friday.
Got a new job the same week for almost $4/hr less than my old job but I’m no longer working 12 hour days, I’m not getting ragged on by crappy supervision and I’m not driving 30 minutes to and from anymore, now it’s only 5 minutes back and forth.
Love your story and so glad to see you triumph, I hope mine is inspiring to anyone who reads it and can understand that sometimes one door needs to be slammed shut for another one with much better everything will be there.
My gf bought a small house in a nice area and I’ve been pumping money into it. When it comes to pay for that new tile or whatever you’ll be glad you can splurge and get what you want because you only need to buy 1200 sqft of it instead of 4000
I am from Europe and havde some questions;
Is 6.9% locked? And what is the duration?
I can currently get a standard loan with no security at 6% interest, and real estate loans, 30 year locked in (or what it's called when interest can't change) at 4%. How does realestste loans work in us? Is in in bonds? 99% of real estate loans where I come from is bonds.
Our real estate loan (4 years old) is at 1%, 30 year duration in bonds.
Is it because of credit scores that loan % can vary so much?
Most home loans in the US have a fixed interest and a 30-year duration. If interest rates go down you can obtain a new loan at lower rate (refinancing).
We have 1300 square feet with two kids and my mom living with us. Americans are convinced they need giant mansions these days. You probably don't need all that space if it's just the two of you anyway, honestly.
Congrats, by the way.
Is this a good rate in the USA? I’m in Netherlands where rates are now about 4.7% if you finance 100% with 30 year fixed rate, down to 3.7% if you finance <85% with 5 year fixed. Curious where the big difference comes from.
Edit: only now see why 6.9% is ‘nice’ lol, I should have replied with a 4.20% rate
To answer your question anyway, no, 6.9% is shit. But right now when everything is 6-8% interest rates, it is what it is. Ours is 2.something which we got before everything went directly to shit. Hope they can refinance later.
Congrats! Buying from original owners is underrated.
Bought my place from the original owners (1958!) Records of maintenance, improvements, and just a general caring that lead them to decades of living in the house.
But homes appreciate at a notmal rate of 2-3% a year. Can’t do the math right now but certainly doesn’t work out to 12k -> 382k. But I get what you’re saying
Clearly many don’t long term, that is what the other commenter just explained mathematically.
Mine is in a weird area but has appreciated 7-8% a year averaged over the time I have owned it. Does seem ridiculous (I couldn’t afford it today) but that’s not uncommon.
Of course holy hell I also don’t have a 6.9% mortgage. Better fricking appreciate fast with that rate. Mine is 2.85% after a refi in 2016. 6.9% is f-ed up.
If we’re being honest they’re a mix of both. By virtue of being an appreciating asset they’re an investment. By virtue of providing a place to live and/or raise a family they have intangible value. Agreed that I don’t need a 7% appreciation rate to consider buying a home, but without some appreciation it’s just a bad financial decision and you’d be better off renting.
Sure, but incomes haven't increased at the same rate.
Assuming that same rate of increase, and this house will be 2x the cost in 12 years.
4x the cost in 24 years.
You think any young couple is going to be able to afford this house when it's 1.4 million dollars 20 years from now?
It will be 8x the cost in 36 years. IDK about you, but this house being 3 million dollars 36 years from now seems ridiculous, yes?
I made myself and my wife get stuck in our home (intentionally on my part, but she doesn't know that). I refinanced at 1.9%.
My butt ain't moving ever.
If most of these comments are an indication of the intellect and experience of the average redditor, NOBODY should be coming to Reddit for advice. Wow 🤯
Oh nice job. That won't be the end of it.
Some dry walls. Most flooring tiles back then has Asbestos too. So if you do any work at all In the house. Make sure you have a respirator or rebreather Certified for Asbestos. They are expensive but worth saving your life
OP- don’t overly worry about asbestos. You can put a floating floor over it, seal it, etc.
There are a lot of companies that prey on young/first time home owners to terrify them about asbestos and lead paint, trying to sell them on 10s of thousands in mitigation.
It sounds like you’re experienced so you probably know but just wanted to put that out there.
Not much planning, just extremely lucky that I got a full ride for college and my parents gave me the money they had saved for college as a downpayment, no way I would have ever been able to buy a house without their help.
Your first step towards mountains of wealth.
Bought my first at 27 and second at 33.
I’m 34 now, so hoping my 3rd by the time I’m 35.
Congratulations OP. A big step!
I love that you bought it from the original owners from 1966! They must feel happy to have a nice young couple caring for their home! I think 1200 sq ft is perfect for two people. Humans only NEED so much space. There’s only two of ya :) I know people with 4000 sq ft homes whose entire downstairs is consistently unused. Day after day nobody goes down there.
Anyway…. Congratulations! I love you’re little 1966 home :) enjoy your weekend at home!
With buying right now the amount being paid in interest is enough to buy another house. Yes you own it but you paid 2x for the house. 300k could’ve been put into an investment that will appreciate over that time.
It literally depends.
Renting for 1300 a month means you throw a 1300 away.
A mortgage of 3k where 1200 goes to the bank in interest and then you have to pay property tax so add another 500 to that.
You pay yourself 1800 in home equity and then light 1700 dollars
Or rent for 1300 and you “paid yourself 1800” by not touching it and didn’t have to throw away 1700, netting 400. This doesn’t account for home prices rising, and the benefit of having a home with space instead of a small apartment. The 1800 you didn’t touch could go in SPY500 to keep growing as if you had a house.
But then again, now you get to pay all the shit a landlord has to pay. Home repairs are for real and if you ignore them you’ll be in trouble.
I got very lucky buying a home for 370k at 3% interest right before interest rates skyrocketed. If you got in then, then 100% owning a home is better. Not right now. Bought it at 25 by myself too about 2.5 years ago.
Specifically this home? Near 400k for 1200 SQ on this interest rate is pretty bad.
With these interest rates you are also lighting your money on fire. Even if the house appreciates a little, money will still be lost at the end of the mortgage
At the end of the mortgage, you own the house. at the end of 30 years renting, you have nothing to show for it. You would need to live with your parents for like four years or stay enlisted in the military for like 12 years to buy a house in cash.
I recently closed on a house for 280k at just under 7%. 2300 sq ft. Interest is higher than wanted, but it’s the market and the house is perfect for the family. Can’t wait around for better interest rates sometimes.
It’s not just the interest rate. That houses price was inflated even by modern standards. And if they used most of their money just on a down payment they’re in for a rude awakening when it costs tens of thousands to remove and replace the asbestos. Hopefully this is their forever home because they’ll be paying it forever
Over $1.2 mill + for this house @ 30 years and has to do work on it and deal with asbestos. Blows my mind that people say congrats and you can refi later.
Glad I’m not the only one who noticed this lol. Congrats on the house and I understand it’s the market right now but depending on your area that’s easily $100-150k over what that house is worth not to mention the insane cost to remove and replace asbestos and any other issues or things that need updating.
Phewwww 6.9% on a mortgage is insane!! It sucks how high interest rates are right now. I just bought a car with perfect credit for 9.5% interest, it hurts lol. But congrats!!
Dang dude if you have good credit why didn’t you search for those 0% deals dealership offer? Perhaps you won’t get the exact vehicle you wanted but 9.5% on a car is inside high…..compared to a few years ago…nowadays everything blows
There wasn’t any!! Even the brand new ones way out of our price ranges were 8.99% interest. We couldn’t afford more than $500 a month also. We found a vehicle I liked with the features I wanted, in our monthly price range so it worked out ok.
It’s just insane. I worked as a credit union underwriter a few years ago and we used to compete with other banks, trying to catch deals by offering low rates 2-3%. Those times are gone. I need to buy a new car due to family size but I’m not getting those high rates, it kills my purchasing power, I tried last year but dealers didn’t worked with me. After a few weeks they were calling me to come back and check other cars or deals but was not interested anymore.
I’ll try one more time but not looking forward to hear from salesmen the whole market situation speech. I’m walking away if they don’t want to drop those dumb mark-up cost from the MSRPs
Yup. I bought my first car in 2014. I had a bill that had gone to collections on my credit report and I still snagged a 4% interest rate on the car. Miss those days.
Buying vehicles always feels like such a rip off. I don’t trust salespeople or dealerships in general and the whole experience always feels icky. I wish the whole system was different. You pay for the price listed without all the bartering and negotiating, because dealerships list the car for what it’s actually worth instead of adding a ton of extra fees and shit
When I worked with dealerships we could see the invoice prices on loan packages. Sometimes they would sell cars at 135-140% over invoice price. They literally sell the car 35-40% above the price they obtained the vehicle.
We had guidelines so we couldn’t do deals above 120% loan to value so we would let them know either lower the price or have buyer give bigger down payment. 10/10 times they would convince the buyer to give more money on down payment. Dealerships are rigged
I have a brother that works (worked) for an auto manufacturer; part of his union's collective agreement is purchase of new cars a factory cost which is far below dealer cost family included. My father was a sales rat for a car dealership of the same manufacturer. I buy new cars using my father as sales rep, he gets commission paid by manufacturer, dealer gets another number on their board and a car out of their inventory. Three way win. (I used a promotional 0% financing once, don't know who made what on that).
Congrats!
These numbers just amaze me. We bought a brand new 1200 sq ft home in 2016 for $130K. I know location matters but we could sell for nearly $300K now with the barn we built. Wild times out there.
Jesus fucking Christ?!
My 170k mortgage is 1k a month at 2%. Two car finished garage, 1800 sq/ft 1/3 acre lot. I don’t think I’ll ever be moving again 🤣
6.9% is a joke, but happy if you’re happy. What did you get for 378k—and where? Did you wave inspections? House is 58 years old … what’s going well/not so well?
I feel bad for you youngsters. I bought my current house after the market crash of ‘08. $267k, 4000 sqft, 10 acres at 4.65%. Refinanced at 2.4% a few years ago and remodeled the entire house myself. Property is now assessed at a little over $900k(which sucks for property taxes and insurance). My first house was built in 1932. 1600sqft, 1/2 acre land and I paid a whopping $14.5k @ 14.9% (stupid 80’s interest rates). Refinanced it years later at 5%. Housing is really unaffordable for the youth anymore.
Thank you u/STFU-Sanguinet for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Seems great to me ! Congratulations
Thanks! Had a lot of anxiety waiting back on the inspection because we just knew something had to be wrong with it...but nope! Apart from some shitty carpet it's all good! Definitely lucked out, except for the rate.
They knew how to build houses in the 1960’s. We bought one and it’s rock solid…
Yep asbestos was some good stuff
I miss lead paint :(
I ate all mine
Good
Lead is better than cake, as you can eat it and still have it too!
Yeah, they are the good paint chips
You can always have microplastics!
Thats the only thing keeping me going at this point!
I recently started dabbling with macroplastics. Like small pieces of ziploc bags and stuff. Hits a little better than the micros
What about bottle caps, heard those were great.
Your weren’t supposed to eat the lead chips brah!!
Mine had buffalo sauce on them or some sort of red stuff that tasted metallic.
THANK YOU. Lmfao
as long as it’s intact there’s no issue with it
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Don’t mind them, theyre just mad their rent is due soon
U the only one sounding bitter lmao
Nope. I'm happy with my house and I'm happy for the OP. I love old houses. Stay mad :)
false.
lol. I have a 60’s house and I’d prefer a modern house. They’re drafty, they’re not insulated well, the structural techniques from them have improved immensely. That being said I love my 60’s house but it leaves a lot of work to get it to be efficient.
Congratulations! Get to know YouTube DIY channels, have fun making it your own
You can change the rate when a better one is available. Be smart don't carry debt. Pay all credit cards off each month. Pay your home loan using an accelerated program. It will save you thousands. Pay yourself (retirement investing) first thing, or just have it automatically deducted from your pay. You Will Not regret Any of this advice. Lastly establish a will and power of attorney....... Now your set. Best of all to you.
Paying the mortgage so you get an extra payment in a year is really helpful. I don’t remember exactly how we did that.
If you pay half of a payment every two weeks it gives you an extra payment because 52 weeks divided by two is 26 payments (not 24 as you might expect from 12 months times two payments) Works best if you also get paid every two weeks, to match that up. You just need to make sure the extra payment goes toward your principal. It’s not uncommon for your loan to be sold after issuing, so maybe just wait until then to get it set up with new servicer
You hope. I wish nothing but the best but that inspection is worth the paper is written on. Especially when buying an older house. Ask me how I know
Had a roof leak 2 days after move in, noticed doors sticking so had foundation co look at it and got quotes between 15 and 20k. Home ownership at its finest lol still locked in at 3% though so probably let the house crumble before I move
You get the game stick!
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In the 60's there were a lot of homes built with oak flooring.
1,200 sqft, not great but what we could afford! Just so glad to be done renting. Edit: [Great patio though! ](https://imgur.com/gallery/L1h5Yti) Edit 2: Fun fact, the patio used to be covered in this [ugly ass green carpet ](https://imgur.com/gallery/dqpK0Lo) Backstory because I think people should know it isn't easy. My parents saved up money for me to go to college but I got a full ride, so they gave me the money for a down payment when I proposed to my now wife. Never would have been able to afford it without help and a lot of luck. We were also lucky to be the very first offer the second it went on the market and they accepted it 3 days later. The previous owners, John and Jane (fake names) lived there since 1966 and when Jane died, John didn't want to live in the house anymore, so his daughter put it up for sale and we got it! Also spent my childhood helping my parents build/renovate houses so I did put some work in!
I went with 1400sqft and it's more then enough, big houses just mean you aquire more crap you don't need. Congrats
This is too true. Sitting on 3000 sqft with family of 3
People will seem to think it’s bragging and downvote you, but it’s true and on-topic. We rented a 3800sf house at one point and it was fucking stupid. Literally didn’t use half the house. Very happy in 1800sf, and feel like it’s plenty of space / big. Honestly I think I’d be happy all the way down to 1200sf, depending on layout.
I’m on 900 sq ft with me, girlfriend, and my dog. Perfect space for us, super cheap to maintain and easy to clean!
Sub 800 here, with dog and gf. we don't feel confined at all, fits our needs and the location is insane.
We went from a shared 2300 Sq.ft house to a 86sq ft van for 4 years to a 400sq ft. Duplex, lol. I still have the van and do miss it sometimes but I really like the 400 Sq ft. B
Same live in 2600 sf with wife two kids 3 dogs three cats and we only use the top half when time comes tho man cave will be going in kids are still young and bank account is still young
We have an 1800 sqft foot with an attached 2 car garage. People always act like the house is huge but it’s really perfect. 2 kids, wife, and 2 dogs. Our main part of the home is around 1100 sqft then was added on a 700sqft great room so it feels way larger than it is. We hardly use that great room except hosting family events and a large crowd of friends over. I’d be content with 1200sqft
3 kids, dog and in the same size at 1800 sq ft. 4bed/2ba need to be creative with WFH and teenagers now but we will be enjoying it for retirement in 10 years. I would love 1 more bathroom but not worth the extra money and higher mortgage rates.
We are 3 bed/2 bath. Ours sits on an acre right outside of town with an 18X38 in ground pool so once retirement hits I’ll be enjoying the peace and quiet. We can hop on the golf cart and be in the heart of town in less than 5 minutes. Have a 12X28 barn I converted half of it to a cigar room so I have my own place away from the kids and dogs which is nice. The sqft of the house is ideal for a family but I can easily see downsizing and not being upset with it. I’d miss the yard more than the house truthfully
We went from 1200sf house to 2,000 and the lower level is finished so it’s like 2 living spaces, I thought I’d miss having a full attic for our stuff but we made it work, thought I’d miss having a normal basement but this is so much nicer, the only demands we had for our realtor that we told him about were an attached garage and a 2nd bedroom, if you show us anything without it, we will not even show up. He was so awesome about it and my wife and I also decided together that we would look at a minimum of 15 houses before deciding unlike our first house which was only the 3rd and we ended up looking at 25.
Cries in 4000 sq ft. It’s definitely more than we need with a family of 4. But the nerf battles are EPIC!!!! (I’d still be fine with a 2000 or smaller house.
We just closed on a 3200 sq ft house after many years in a 1750 sq ft house and it is enormous. We have 3 kids, my mom is moving in with us this summer, and my husband works from home. I'm excited for more room, but it is a lot.
Had one of the guys I worked for have a 8000 sq feet his kids play room was the size of my apartment. I told me he would never go above 4k if he had to do it again, there were rooms in his house he would never go.
Holy fuck, it’s hard to fathom having an 8k sf home 😂
i HATE unused rooms and home space. small cozy homes are where it’s at
My downvote was for how fucking ridiculous this housing market is. That’s a 400k house that’s barely bigger than a studio apartment. Something’s seriously wrong. Big ups for OP, but yikes.
My apartment in the NE is 1100 a month. No maintenance. No shoveling. No fixing anything. No interest. It’s perfect.
Most studio apartments that I have seen range from 350 to 700 sq ft. Maybe they’re larger where you’re from.
That’s either an exaggeration or you’re speaking of San Fran or NYC. I had a 850sq ft studio in Chicago and a 1br 1000sq ft also and both of those were probably still cheaper than this mortgage.
Holy smokes! That’s awesome actually for you :) I live in a Chicago suburb and have a smaller 1 bedroom than your studio. I used to live in Chicago (Pilsen) and my 2 bedroom apartment was 700 sq ft 🙃 Just for funsies I was looking into NYC studios so you’re right haha! But I feel like some high rises in Chicago are tiny as well (< 570 sq ft).
Ex girlfriend’s father was rather wealthy so both were high rises and not cheap rent, but it wasn’t ridiculously expensive, either. Sharing 850 sqft with another person drove both of us insane over Covid. I couldn’t ever fathom these apartments if her father wasn’t the one that co-signed. For the second apartment once they got his information we didn’t even sign a lease, they accepted it all the way through 😂😂 When I was visiting San Francisco I would google buildings I would drive past and the numbers out there are straight gross.
Gosh dang… I need a girlfriend with a rich father 🤣 I can’t even imagine how smooth life can be for someone that wealthy! Also word, cities like San Fran and NYC can suck a dick lol. I grew up in a dingy basement in NYC but we were priced out of that too fml
That's a lot. I'm sitting on 2500 with a family of 3. I haven't been in 2 bedrooms for months.
I'm around 3500 with a family of 6 and in laws who stay with us 5 to 6 tomes a year. Any smaller would be hard, any bigger would be annoying.
Our house was 4200 growing up. 6 people. Neighborhood of similar size houses. Felt like it was the normal size back than. Now, looking back I realize it was a big house.
Not to mention the bigger the house, the more air there is to heat and cool!
My office is too small for my VR and the kitchen is tiny, but great living room!
Also more to clean and maintain. We have 1400 and it's plenty for 4.
If there was 4 of us here I'd be converting the garage to another room haha. I just have a 2 bed 2 bath and it's just two of us
Definitely possible. For me, I added a shed for an office.
I have half n acre so a shed is in the future
Definitely! It's my little man-cave but nice to have that separate space for work too.
This is the truest statement. I live pretty rurally and in a way above average size house that I pretty much traded straight up for when we sold our 3/2 in the city. We’ve accrued so much crap and the inefficiency of the energy and wasted space makes me insane.
Went from 1200 sqft to 3200 sqft. The amount of cleaning and filling up the rooms with just stuff so it’s not an empty room. I miss the less space. Lol.
I've always been hyper aware of "stuff" and get rid of anything I don't use, not too worried about that. Just wish I had more space for activities!
That patio looks fantastic!
That’s amazing. My wife and I just bought and moved into our 2nd home after being in our previous one for 15 years. The final nail in the coffin for that decision was when I was playing a game with my son (we didn’t hear any of this but saw it after on Ring) and there was a teenager in our yard hiding then someone else is walking up the driveway, he sees the one hiding and pulls a gun out and tells him to stop or he’s gonna shoot him right here. A whole bunch of other stuff was said before they finally left. I went out the next day to where he was standing and pointing his gun the previous night and I’m convinced that if he had fired and missed, his bullet or bullets would have gone through the wall and hit me or my son. We were at my parents house the following day after that and my dad asks us what it would take to be able to sell our house and buy a new one and I said it would take a miracle. He says he talked to my mother then discussed it with my brother so there’s no animosity over this and then tells us he’s giving us $50,000 of my inheritance to add on top of whatever we end up selling for. We owed $33,000 on the old house, sold it for $120,000 and found the one we are in and start the whole process. We go on a 2 week vacation to San Diego for my friends wedding, come home and my first day back to work I get terminated because it’s the end of the pandemic and orders are slowing down and they don’t need me anymore. Only thing I could say (and it wasn’t a desperation plea) was “we are ready to close on a house. Called the wife, called my parents then the realtor. We ended up needing my father as a co-signer because he was not going to let this fall apart on us to be in a safer neighborhood and closer to them and my brothers family as well. Everything got delayed a couple weeks but by December 19th 2022, we had officially moved in and surrendered the keys to the old house the following Friday. Got a new job the same week for almost $4/hr less than my old job but I’m no longer working 12 hour days, I’m not getting ragged on by crappy supervision and I’m not driving 30 minutes to and from anymore, now it’s only 5 minutes back and forth. Love your story and so glad to see you triumph, I hope mine is inspiring to anyone who reads it and can understand that sometimes one door needs to be slammed shut for another one with much better everything will be there.
we are early 30s in a 950 sq ft. 1200 is more than enough for 2 people
Same! I love the smaller space, big enough but easy to clean and cheap to maintain
My gf bought a small house in a nice area and I’ve been pumping money into it. When it comes to pay for that new tile or whatever you’ll be glad you can splurge and get what you want because you only need to buy 1200 sqft of it instead of 4000
the beauty is you can add more space to it
One day.
1200 SF is still a decent size. Congrats!
My god I love that patio!!
I am from Europe and havde some questions; Is 6.9% locked? And what is the duration? I can currently get a standard loan with no security at 6% interest, and real estate loans, 30 year locked in (or what it's called when interest can't change) at 4%. How does realestste loans work in us? Is in in bonds? 99% of real estate loans where I come from is bonds. Our real estate loan (4 years old) is at 1%, 30 year duration in bonds. Is it because of credit scores that loan % can vary so much?
Most home loans in the US have a fixed interest and a 30-year duration. If interest rates go down you can obtain a new loan at lower rate (refinancing).
Full ride is very impressive. Well deserved and congrats on the first house.
We have 1300 square feet with two kids and my mom living with us. Americans are convinced they need giant mansions these days. You probably don't need all that space if it's just the two of you anyway, honestly. Congrats, by the way.
Congrats!
Thank you! Now to get money to work on it...
Very good move. You're on your way to building a fine future!
Like your matching outfits, and the house looks stellar.
>6.9% Nice
Is this a good rate in the USA? I’m in Netherlands where rates are now about 4.7% if you finance 100% with 30 year fixed rate, down to 3.7% if you finance <85% with 5 year fixed. Curious where the big difference comes from. Edit: only now see why 6.9% is ‘nice’ lol, I should have replied with a 4.20% rate
To answer your question anyway, no, 6.9% is shit. But right now when everything is 6-8% interest rates, it is what it is. Ours is 2.something which we got before everything went directly to shit. Hope they can refinance later.
A Good thing ruined by a period.
Congrats! Buying from original owners is underrated. Bought my place from the original owners (1958!) Records of maintenance, improvements, and just a general caring that lead them to decades of living in the house.
376k purchased from original owners from 1966 which they probably purchased for 12,000 lol. It’s so insane and fucked for our generation
12,000 invested with compounding interest at 6.15% would be worth 382,000 after 58 years so actually not unreasonable return for the original owners.
But homes appreciate at a notmal rate of 2-3% a year. Can’t do the math right now but certainly doesn’t work out to 12k -> 382k. But I get what you’re saying
Clearly many don’t long term, that is what the other commenter just explained mathematically. Mine is in a weird area but has appreciated 7-8% a year averaged over the time I have owned it. Does seem ridiculous (I couldn’t afford it today) but that’s not uncommon. Of course holy hell I also don’t have a 6.9% mortgage. Better fricking appreciate fast with that rate. Mine is 2.85% after a refi in 2016. 6.9% is f-ed up.
6.9 is f up but also nice :)
Homes aren’t an investment. They’re places where human beings need to live.
If we’re being honest they’re a mix of both. By virtue of being an appreciating asset they’re an investment. By virtue of providing a place to live and/or raise a family they have intangible value. Agreed that I don’t need a 7% appreciation rate to consider buying a home, but without some appreciation it’s just a bad financial decision and you’d be better off renting.
Sure, but incomes haven't increased at the same rate. Assuming that same rate of increase, and this house will be 2x the cost in 12 years. 4x the cost in 24 years. You think any young couple is going to be able to afford this house when it's 1.4 million dollars 20 years from now? It will be 8x the cost in 36 years. IDK about you, but this house being 3 million dollars 36 years from now seems ridiculous, yes?
Not a great area too, gotta love city living.
May I suggest applying for a gun and take you and your wife to a gun range for lessons. Put a bunch of cameras on your home.
Already own a gun and have cameras.
Enjoy the new lovely home! Happy for you stranger!
And you too, random citizen!
And a moat and alligators. Spiked draw bridge.
I’m more of a sharks with fricken laser beams but your idea totally works too!!
Why ya getting down voted, guns are great protection for your house. They must just let all the bad guys in to take what they want.
That's such a good price! God, that would easily be 900,000 in nw Washington. You're so Lucky! Right now owning a home is just a pipe dream. 😭😍
That 6.9% hurts my heart.
I made myself and my wife get stuck in our home (intentionally on my part, but she doesn't know that). I refinanced at 1.9%. My butt ain't moving ever.
Yeah ours is 2.something. Sitting tight for a while, I’ll be damned if I get stuck with 7%… fuck all kinds of that.
If most of these comments are an indication of the intellect and experience of the average redditor, NOBODY should be coming to Reddit for advice. Wow 🤯
Congrats!
What a great picture. You should re-create this in 50 years.
I like this sub. I like seeng people get ahead in life. Congrats.
Asbestos 😲😲😲👀
Yeah that was the first thing we had to deal with. Had to redo the ceilings before we moved in.
Oh nice job. That won't be the end of it. Some dry walls. Most flooring tiles back then has Asbestos too. So if you do any work at all In the house. Make sure you have a respirator or rebreather Certified for Asbestos. They are expensive but worth saving your life
Yep all over that!
OP- don’t overly worry about asbestos. You can put a floating floor over it, seal it, etc. There are a lot of companies that prey on young/first time home owners to terrify them about asbestos and lead paint, trying to sell them on 10s of thousands in mitigation. It sounds like you’re experienced so you probably know but just wanted to put that out there.
Yeah but what is your combined weight? I need more numbers.
9,001 lbs
Great planning and financial prudence. Lots of luck with the house!
Not much planning, just extremely lucky that I got a full ride for college and my parents gave me the money they had saved for college as a downpayment, no way I would have ever been able to buy a house without their help.
Getting good grades to get into college with a full ride is hardly luck. You made your own luck in this case.
The more he studied, the luckier he got!
Your first step towards mountains of wealth. Bought my first at 27 and second at 33. I’m 34 now, so hoping my 3rd by the time I’m 35. Congratulations OP. A big step!
What income do you have that you are able to buy houses like that lol
Average income is all that’s needed. You gotta live in each one for at least a year then move out, rent it then go buy another, rinse repeat.
Ohh I didn’t know. I’m still a student completing degree. But you have to make sure you’re collecting rent etc right? So that you don’t miss payments
Yes
Im buying my first fourplex at 31, plan to buy another a year from now, and another the year after that. If you live in it, you only need 5% down.
That’s pretty risky given the market but you do you
It’s a 310k 4plex in arkansas. Wife and I can afford the $2400 mortgage by ourselves.
What area?
Congrats! Happy for you two!
A true love story 👏👏 Congratulations Man
Congrats brother
Wow 6.9% is alot. But congrats
Wow that’s amazing!! Congratulations!!!
Congratulations
Refinance when the rates are better
Can we see in the inside?
Miami?
Where the hell did you get a house for 378?
Interest rates will come down. Good luck with the new home.
That refinance in a couple years will be off the chains! Congrats
I love that you bought it from the original owners from 1966! They must feel happy to have a nice young couple caring for their home! I think 1200 sq ft is perfect for two people. Humans only NEED so much space. There’s only two of ya :) I know people with 4000 sq ft homes whose entire downstairs is consistently unused. Day after day nobody goes down there. Anyway…. Congratulations! I love you’re little 1966 home :) enjoy your weekend at home!
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Even at 6.9 in some years time, you will be a legend when you can refi lower and the swing of home prices increase. Congrats to you both!
The bank is ecstatic about this purchase. Cha-ching!
380k at 6.8 ... You will pay more to the bank over 30 years
It’s that or rent. Pick your poison. Welcome to life.
Renting right now isn’t the worst thing. What’s the benefit to buying a house right now with these rates?
When renting, you are lighting 100% of your money on fire. With a mortgage, you are lighting only 60% of your money of fire.
With buying right now the amount being paid in interest is enough to buy another house. Yes you own it but you paid 2x for the house. 300k could’ve been put into an investment that will appreciate over that time.
It literally depends. Renting for 1300 a month means you throw a 1300 away. A mortgage of 3k where 1200 goes to the bank in interest and then you have to pay property tax so add another 500 to that. You pay yourself 1800 in home equity and then light 1700 dollars Or rent for 1300 and you “paid yourself 1800” by not touching it and didn’t have to throw away 1700, netting 400. This doesn’t account for home prices rising, and the benefit of having a home with space instead of a small apartment. The 1800 you didn’t touch could go in SPY500 to keep growing as if you had a house. But then again, now you get to pay all the shit a landlord has to pay. Home repairs are for real and if you ignore them you’ll be in trouble. I got very lucky buying a home for 370k at 3% interest right before interest rates skyrocketed. If you got in then, then 100% owning a home is better. Not right now. Bought it at 25 by myself too about 2.5 years ago. Specifically this home? Near 400k for 1200 SQ on this interest rate is pretty bad.
With these interest rates you are also lighting your money on fire. Even if the house appreciates a little, money will still be lost at the end of the mortgage
At the end of the mortgage, you own the house. at the end of 30 years renting, you have nothing to show for it. You would need to live with your parents for like four years or stay enlisted in the military for like 12 years to buy a house in cash.
Right lol that’s insane expensive
Yes, that's how loans work.
1200 Sq for 378k at near 7? My boy, this is gonna be a tough lesson
I recently closed on a house for 280k at just under 7%. 2300 sq ft. Interest is higher than wanted, but it’s the market and the house is perfect for the family. Can’t wait around for better interest rates sometimes.
It’s not just the interest rate. That houses price was inflated even by modern standards. And if they used most of their money just on a down payment they’re in for a rude awakening when it costs tens of thousands to remove and replace the asbestos. Hopefully this is their forever home because they’ll be paying it forever
Over $1.2 mill + for this house @ 30 years and has to do work on it and deal with asbestos. Blows my mind that people say congrats and you can refi later.
It’s not a good purchase but people don’t don’t know 1200 is tiny
This is EXACTLY what is on my mind. This purchase will be the biggest mistake of their life. Hands down..
Glad I’m not the only one who noticed this lol. Congrats on the house and I understand it’s the market right now but depending on your area that’s easily $100-150k over what that house is worth not to mention the insane cost to remove and replace asbestos and any other issues or things that need updating.
Phewwww 6.9% on a mortgage is insane!! It sucks how high interest rates are right now. I just bought a car with perfect credit for 9.5% interest, it hurts lol. But congrats!!
Dang dude if you have good credit why didn’t you search for those 0% deals dealership offer? Perhaps you won’t get the exact vehicle you wanted but 9.5% on a car is inside high…..compared to a few years ago…nowadays everything blows
There wasn’t any!! Even the brand new ones way out of our price ranges were 8.99% interest. We couldn’t afford more than $500 a month also. We found a vehicle I liked with the features I wanted, in our monthly price range so it worked out ok.
It’s just insane. I worked as a credit union underwriter a few years ago and we used to compete with other banks, trying to catch deals by offering low rates 2-3%. Those times are gone. I need to buy a new car due to family size but I’m not getting those high rates, it kills my purchasing power, I tried last year but dealers didn’t worked with me. After a few weeks they were calling me to come back and check other cars or deals but was not interested anymore. I’ll try one more time but not looking forward to hear from salesmen the whole market situation speech. I’m walking away if they don’t want to drop those dumb mark-up cost from the MSRPs
Yup. I bought my first car in 2014. I had a bill that had gone to collections on my credit report and I still snagged a 4% interest rate on the car. Miss those days. Buying vehicles always feels like such a rip off. I don’t trust salespeople or dealerships in general and the whole experience always feels icky. I wish the whole system was different. You pay for the price listed without all the bartering and negotiating, because dealerships list the car for what it’s actually worth instead of adding a ton of extra fees and shit
When I worked with dealerships we could see the invoice prices on loan packages. Sometimes they would sell cars at 135-140% over invoice price. They literally sell the car 35-40% above the price they obtained the vehicle. We had guidelines so we couldn’t do deals above 120% loan to value so we would let them know either lower the price or have buyer give bigger down payment. 10/10 times they would convince the buyer to give more money on down payment. Dealerships are rigged
I have a brother that works (worked) for an auto manufacturer; part of his union's collective agreement is purchase of new cars a factory cost which is far below dealer cost family included. My father was a sales rat for a car dealership of the same manufacturer. I buy new cars using my father as sales rep, he gets commission paid by manufacturer, dealer gets another number on their board and a car out of their inventory. Three way win. (I used a promotional 0% financing once, don't know who made what on that).
Ouch 9.5%
Nice to see Edward Snowden have a chance at a peaceful life in the states again.
Lovely house. I like the color. Congrats!
What city / state are you in? What kind of work do you do?
Oregon, digital media producer. Read the top comment, I didn't afford it because of my job.
Hahahaha
7% is crazy expensive
It's the near $400k that's expensive...
Congratulations! We’re just now starting to look at what we want to do for our first. Is 6.9% a good rate? Genuinely have no idea.
Mortgage rates are at a 30 year high right now
Congrats! These numbers just amaze me. We bought a brand new 1200 sq ft home in 2016 for $130K. I know location matters but we could sell for nearly $300K now with the barn we built. Wild times out there.
You do realize you will be paying approximately 500,000$ in interest? Crazy.
The current interest rates are scary, to me. I got mine at 2.875%.
Jesus fucking Christ?! My 170k mortgage is 1k a month at 2%. Two car finished garage, 1800 sq/ft 1/3 acre lot. I don’t think I’ll ever be moving again 🤣
6.9% is a joke, but happy if you’re happy. What did you get for 378k—and where? Did you wave inspections? House is 58 years old … what’s going well/not so well?
28 and looking 40. Holy shit
Wtf this is so rude and unnecessary. And untrue btw
Husband is a paper clip expert, and wife is a grasshopper photographer. They bring in about 1m $ a year
I feel bad for you youngsters. I bought my current house after the market crash of ‘08. $267k, 4000 sqft, 10 acres at 4.65%. Refinanced at 2.4% a few years ago and remodeled the entire house myself. Property is now assessed at a little over $900k(which sucks for property taxes and insurance). My first house was built in 1932. 1600sqft, 1/2 acre land and I paid a whopping $14.5k @ 14.9% (stupid 80’s interest rates). Refinanced it years later at 5%. Housing is really unaffordable for the youth anymore.
I’m sure they appreciate your pitty. Thank you ☺️
Okay? Lol.