How much should we be positive?
my partner and i earn about $100,000 every twelve months together. we have never save because we have have a faset paced fun natural life. we want to buy a house in the subsequent few years. what percentage of their wage do people usually save?is $60,000 adequate for a deposit on a home worth $500,000
Answers: You aren't ready to buy a $500,000 house and probably will never be.
A rule of thumb is for your mortgage to be between 2x and 3x your annual income which is $200,000 to $300,000 for you. $500,000 would be a (major) stretch.
Do the detailed math. Recommendations are to spend no more than 28% of your income on your housing wage (principal, interest, taxes and insurance). You should spend no more than 36% of your income on installment debt (mortgage, cars, credit card minimums, student loans, etc.). One of these two numbers limits your purchase. These numbers factor surrounded by that you like to do other things - if you allow a lender to bump these percentage upwards, you will be house poor and only competent to make your mortgage costs.
For a $100,000 income, 28% of your monthly is $2333 per month and 36% is $3000 per month. Let's assume you want a $333,000 house with a 10% down grant ($33,000). Your mortgage amount is $300,000. At 5.5% (a pretty good rate) the principal and interest are $1703 per month. I am going to assume that your insurance will be $600 per year (could be illustrious, could be low) for another $50 per month. I am also going to assume that real estate taxes are 1.5% of the plus of the house per year or $417 per month (could be high, but could be VERY low). You will payment PMI (for putting down less than 20%). Assume another $125 per month. Your total per month is presently $2300.
Your combined income is great, but what if one of you lost your job or didn't want to work anymore? Just because the numbers utter you can afford $2300 per month on housing doesn't mean you are comfortable near that!! Don't buy more than you are comfortable paying!!
Use this time to bank the difference between your rent and your prospective mortgage gift. That way you'll any have a bigger downpayment or some brass reserves.
good luck!
ps - your examine about reserves... My income is close to yours and I save 25% of it a year! I hold a nice home too...
You should save as much as possible until you enjoy a 3-6 cash reserve for emergency (like losing your job). With an income that high you should own almost no debt (or no debt).
$60k is a great amount.
If your mortgage is $450,000 at 6%, your payment (taxes, insurance, etc) would be around $3400 a month.
I would set free the difference of your current rent and the 3400.
In ADDITION, you should be saving at smallest 10% of your income in reserves. NO MATTER WHAT.
Best case scenario you would want to put a down clearing of 20%. According to your $500,000 home that you want to buy you would want to save at least possible $100,000. Also you would want to have assets save for a few months of mortgage just contained by case of an emergency.
Now you still can buy a house beside 5% down( $25,000). With only have 5% down you will have a highier interest rate and will enjoy mortgage insurance to pay. You will still want to collect a few months of mortgage payment beside this scenario to.
Is an apartment complex allowed to turn bad your river lacking notification?
I live in Texas. I don't know if they are working on the pipes on the property or what but we hold no water contained by my apartment and I have a 6 month hoary infant with me. We did not receive any type of spot or warning that the river would be off. Is that legally recognized? Is there someone I could report this too?Answers: If the complex have a company come out and do work on the pipes and this is something they are aware of then YES, they are required to put a concentration on your door informing you that the water will be sour from such and such time to whenever. they usually try to schedule this for when a majority of the renters will be at work and not artificial. HOWEVER, if the city turned the water past its sell-by date for non payment of utilities, or the city is doing work and any A) the water pipe get cut and they had to shut the sea off to fix or B) are replacing pipe and have to shut the water rotten to fix, then NO the complex would own no knowledge of this and and so would not know to notify residents and therefore are not held responsible.
You any need to progress down to the office and find out what is going on, or find out who the government company is for the complex, i.e. check the leasing sign or get a business card from the leasing agent (they work thru a corporate office) and they hold bosses (off site property managers) contact the branch or corporate office if you procure no resolution from the onsite office and inform them that the wet has be shut off, they hold an obligation to find out why it be shut off.
When you hold an issue with the onsite department, remember they are overseen by a local branch office or a corporate department go to them for resolutions. Also build sure you address all issues surrounded by writing and keep a copy for your collection. Send Certified RRR so you know when they received it.
Good luck
Call the management bureau to see what is going on. That is what you should have done previously you made this post. There may be a problem with the sea so give them a ring so they can fix it. You have to offer them a chance to resolve it first. You can't purely report them immediately. Maybe they vanished notices outside your door. If they know the water would be out they should hold left you a awareness. Either way, you inevitability to give them a telephone call to see what is going on. You report them after they do not resolve it. Give them until the end of year around 4pm to have your dampen back on.
If you can't arrive at someone call the hose down department and declare it an emergency. Explain nearby is no water and you hold an infant child. They will declare it an emergency. They should dispatch someone out almost immediately. Your manager should be responsible for this service. You may even be able to take off rent money depending on how long the water is out. Contact legally recognized aid to find out if it is not resolved by this afternoon.
Good Luck!
They did that to me in my first apartment. They be rude about it, refuse to pay for a hotel for me, AND kept it bad for 3 days...all WITHOUT WARNING. I be young, and romantic, so i didn't do anything.
If I had an infant son next, you bet I would say something. Ask government, and when they give you an excuse, appointment the news stations. Report the complex.
they hold to give restrictive. if its an emergeny they have to come by door to door and agree to you know. I work for engineering in the city corridor of my state. I know we have to alert people and take off a letter if they are not home. Call your city entry engineering and water dept. and find out how long it will be out. be sure to give an account them about your toddler! Best of Luck
How much more do you think the interest rates will drop on fixed rate mortgages?
Answers: One never knows. In the short to medium term, they will likely come down. Even though the Fed dropped overnight rates .75%, that doesn't mean that longer-term rates will drop. If the drop is considered to be inflationary, long-term rates can actually increase. But considering that the economy is currently in the dumps, I don't see inflation as an immediate concern, so I do see rates dropping. Another item that keeps rates up is credit spreads ... the interest rate that you get is a premium to a risk-free rate, or a treasury of a similar duration. That credit spread, or premium to a risk-free rate has been high recently because of all of the subprime losses and the drop in real estate prices, which has led to losses on "A paper" portfolios. That credit spread should come down over the near term... How much? I can see a normal fixed rate 30-year loan being at 5.1% to 5.6%. That is about all we will see for now. The hybrids (3/1, 5/1, 7/1) should be a bit lower.
But in the long-term, inflation will creep back in from three sources --- weakness of the U.S. Treasuries (greater credit risk), inflation caused by increased cost to produce overseas, and "crowding out" when the government borrows to pay for debt which competes for dollars with the average consumer - pushing rates up.
So go get your fixed rate under 5.5% and be happy.
P.S. -- there is also a chance to get a loan at 5% or lower in the next two years, but that is a risky proposition to wait for it.
All in all, the lower rates is good for real estate prices ... should keep them up. And that should keep loan losses down. that is good, too. It could be a good time to get a loan ... if you have a good stable job and want to purchase.
Not as much as they might go up if you wait.
Realistically rates will never go below 4.5%, that's only about .6% below a rate you can get right now. However, we know that just last month a rate of 6.5% was considered good, that's almost 1.5% higher than right now. It can go back to that in a heartbeat. It takes months, if not years for rates to get this low and no time at all for them to spiral back up.
You do the math and gamble on what it will be next month and determine if it's worth it. People that are waiting are committing financial suicide, it makes no sense at all! Greed is bad in this case!
There is no indication that fixed rates will go down at all. Unfortunately there is a misunderstanding of the "rate" reported on from the Fed. This is the "target" rate which is set by the market and reported by the Fed. The best thing it does when it goes down is to inspire consumer confidence.
Rates likely will go down very little -if at all- before the Fed target rate rises again. Unlike the last time the Feds had to set that rate lower there is far less liquidity in the market and consumer confidence wasn't waning - it was building.
The truth is rates are still historically low. If you are looking to refinance I have seen rates this week as low as 5.25 with no discount on a fixed 30. It didn't get much lower than that at the lowest of lows.
It really depends on what happens with the bond market for bonds that drive Fannie Mae and Freddie Mac. If we hit inflation and recession becomes a reality the Fed change will not affect the mortgage rate that will be important to you.
It also depends if you have a conforming (agency) loan or a non-conforming loan (outside of agency guidelines falsely referred to as "sub" prime).
Bottom line: I would LOVE for rates to go lower but it's not a likely reality that you'll seen them go much lower than they are right now.
Oh ... great question. Of course, there's no sure answer.
Thing is, even though the Federal Reserve has dropped its Fed Funds rate, it only has limited effect on the rates on your mortgage loans.
A mortgage loan is a 30-year loan, whereas the Fed Funds rate is for short-term loans.
Mortgage loans track 10-year Treasury Bonds, but are a bit higher, due to the added risk.
And, sometimes long-term bonds go in the opposite direction of short-term bonds.
But, back to your question.
I think we've hit rock-bottom for mortgage loan interest rates. Sure, they might go lower, but now's as good a time to lock-in a rate. I just refinanced from a 6.75% fixed-rate loan to what I hope is a 5.625 fixed-rate loan. It was only today, so I'm not sure what we ended up with.
Best part, it was with no closing costs. I could've received a better rate if I was willing to pay closing costs.
I think brand-new loans can get a better rate than a refinance.
If everything turns bad over the coming months, rates might drop lower, but then you can just refinance!
http://bostonreb.com - The Boston Real Estate Blog
They dropped this morning and my guess is that they will drop at least one more time before the end of Feb. Beyond that they will wait to see what it does for the economy. More than likely will not go past 4.5% and will not stay there to long. It is a great time to buy a home.This is just my opinion considering the election year, the economy, and history of what happens during a Buyers market. We will all wait to see, but don't wait to long.