How much is your mortgage?

[melanie18]

Thanks for all the responses! Housing in central NJ is ridiculous!!!
My husband and I both work (I work PT) and the new mortgage would be about 1/3 of our monthly net pay. I've been completely open about our finances with our family and they all think we're nuts for not doing something!

To answer some of your questions, yes it does include the proceeds from our current home (we more than doubled our money and the new mortgage is still that high--can you believe it?). We only have 1 car payment as our other is paid off. It's sound silly, but we would likely have to cut down on our WDW trips...and that's what worries me (we're DVC owners).

It would be a real struggle until next September when DD4 goes into kindergarten...saving us $700/mo (and she only goes PT)!!! When you look at it that way, we'll actually have more disposable income in a year...I'm so confused and don't know what to do.

I feel like if we don't move up now (before DD4 is in school) then we may never do it because houses prices just keep going up in our area (and we don't want to move anywhere else).

 

[MichDISer]

Our current mortgage is about $1300/month. To move up in our area, our mortgage would be about $2200/mo...

You've been in your current home for 12 years?
Hasn't the value of your home gone up in all those years?
We were in our first home for 8 years. When we sold it we took the equity and applied it toward our second home and our mortgage payment barely changed. Maybe you are moving up TOO much?
There is no way we would take on a mortgage of $2200 per month, but that is just us. There are too many other things to spend money on besides a mortgage. I would not want to get stuck paying that much and not be able to have any extra money to do anything.

 

[Mskanga]

Boy do I consider myself lucky! My husband and I bought a foreclosure home 9 years ago and our payment is one third of what people are paying for new homes here.
We have 4 BR , 2 BA , livingroom , dinningroom , kitchen and unfinished basement. This is more than enough for us. If I ever had to pay more than $1,000 a month in mortgage I think I would have heart failure.

 

[Blondie]

Originally posted by gymnasticsmom68
That's a little personal, I don't even tell my family those kinds of things.

I don't either.

 

[Pooh Girl 71]

I'll tell anyone, we have an awesome deal

$695 per month. 5 bedrooms and it's all brick. I did however move to BFE to get it but that's ok.

I also would have heart failure to pay over $1K a month

 

[SlightlyGoofy]

We bought this former apartment house 28 years ago. Bit by bit I have rehabbed it, yard sales. auctions and such, paying cash as we went. Paid ahead on it and paid it off in ten years. There is nothing in the world like having your home paid for. Makes for more money for the fun things in life, ie Disney World!!!

IMO is is alright to reach a tiny bit if you are young and certain of increasing income in order to avoid having to move every few years (is very expensive)to have enough room or good neighborhood but being house poor and having to struggle to pay the mortgage is setting yourself up for a potential mental breakdown and for certain stress in life and marriage. I believe in living UNDER our budget.

We live in a small town, wonderful place, in our huge 18 room 'mansion' and do not suffer at all. It was fun and I would do it all over again. It forces you to be more creative and I consider bargain hunting a hobby.

SG/Linda

 

[sweet angel]

Housing in central NJ is ridiculous!!!

Depends where in central NJ you're talking about. I'm in southern Ocean County and prices aren't too bad. I bought my house 4 years ago with a minimal downpayment and refinanced a couple of times. My payment now (including taxes and homeowners) is under $740. Of course, I got a great deal, and my house is only a 2 bedroom ranch on an 80x100 lot, but it's in a nice neighborhood and has already appreciated in value to at least double what I paid.

Some of you people must live either in really high-priced areas or mansions!!

 

[campingcorgi]

Ours is paid-off and has been for about 12 years. We hope (after doing some fixing-up and landscaping) to have about 225,000 to put down on a new home in Orlando at the end of this school year. I figure we will have a mortgage with the new house....hopefully not too high, though!

My mind is just reeling with all the things to do in the next year!!

 

[melanie18]

SlightlyGoofy, your home sounds wonderful! Unfortunately, to find an 18 room "mansion" in NJ would cost about 1.5 million, LOL! And yours would still be nicer!

I'm still so torn...our house is sold and we have until Oct 1 to find a house to buy (did I mention we leave for WDW on 9/30?). If we don't find a house by Oct 1, either we or our buyers can cancel the deal. Other than the 1 car payment, we have no credit card debt.

yikes...

 

[*Fantasia*]

If you don't mind me asking, well..since I figured you shared the info on $$$ mortgage you pay with us, which is WOW, just curious how much is the house? Is this house by the water?

I

 

[chager]

You would have to consider everything. For instance you currently only have one car payment...can you afford another one if the paid off car dies? Do you need 2 cars for everyday things? Our paid off car just died. We needed 2 cars because of our job schedules and car pooling isn't an option for either one of us currently. I am going to start a new job which will allow me to carpool with my dad soon though. We are being killed by our house payment. Our previous payment was around $500 and our current is around $1300. We moved because the area we lived in was not the best. We did rent for a year or so in between with a payment of @ $650 (I have heard that it is now @$800 4yrs later) and we actually paid more due to having cats. To be honest I don't know that I would get a high mortgage payment again. With in a year of moving in DH lost his job because the company closed. He was out of work for 8 weeks and my paycheck doesn't even cover the mortgage! I'm not sure if your payment includes property taxes (or if you even have them) but that is also a consideration. Our payment does include them but I know they run about @2000/yr in our area. Also utilities will increase with the size of the house. Not to mention any school related fees you will have when your child starts school. It is definately a HUGE decision!! I would suggest sitting down with a financial couselor that can look at everything with you to make sure you are taking everything into consideration. Good luck!

 

[melanie18]

To answer some questions...

The house we are looking at is $400,000 (average for this area).
The property taxes are $6,000 (again average for this area, but still $2K more than what we are currently paying).
and no, unfortunately it's not by the water. You would think it would be for that price. We would be so much better off moving to Iowa or wherever houses are cheaper, but again, not an option.

My car is only 2 years old and my husbands is 5 (but it's a Jeep and they last pretty long). Having one car is not an option for us with our jobs (he also does landscaping on the side on weekends).

 

[Toby'sFriend]

I can't imagine making a monthly payment that high on less than 6 figures and still having enough money to save for retirement and college.

Our current payment payment with taxes and insurance runs just under 20% of our net income and it seems high to me.

 

[mom2grace]

Originally posted by melanie18

I'm still so torn...our house is sold and we have until Oct 1 to find a house to buy (did I mention we leave for WDW on 9/30?). If we don't find a house by Oct 1, either we or our buyers can cancel the deal.
yikes...

Can you put your stuff in storage and find a short-term rental to "buy" yourself some time???!!! When you are facing a deadline, sometimes you make impulse decisions!

Does your purchase agreement say only that you have to be moved out of the house or do you actually have to have bought another house??

BTW, we bought a new house without even having our house on the market!!

So, in essence we are paying a mortgage payment that is double our "regular" one.

I totally agree with putting the extra into savings each month and see how that feels, then if you do buy, use the $$ in your down payment.

Please send prayers and pixie dust that we sell!!!! (To get into the neighborhood at a reasonable price (only 20% more than our old house), we had to jump immediately)

 

[huey duey & luey]

Melani,
I also live in central NJ and the prices are crazy. In Dec 2002 I moved from Cranford to Old Bridge (couldnt afford I bigger house in that area). My monthly payment increased byabout $500 a month, $200 were for taxes. I have a much bigger house and yard. I also worried about the increase and it was tough especially since I wasnt working. I know that in a few years it will be much better. I think if you can do it now it is worth it, prices are only going to rise. I have a pool not sure about the chemicals but my electric during the summerwith central air and pool is around 300-350 a month. HTH
Tara

 

[Lewski709]

440/mo, but to get it there.....I made triple payments at times and we refinanced about 3 yrs ago.

 

[melanie18]

Our contract says the sale is "contingent upon seller finding suitable housing".

Right now, we are putting my entire salary into savings to be used towards the new house. Basically, my salary would be just shy of covering the mortgage.

 

[Disney Doll]

Started with a $750/month rent when we were first married. First mortgage was $1100/month for 30 years. Refinanced when the rates dropped to a 15 year at $1300/month. I wouldn't want to pay much more than that. We feel pretty comfortable in that range with all our other expenses. I don't really ever want to work to be a slave to the house. It's not a huge house(about 1900 sq.ft.), but we like it, it's cozy, and it's the 2 of us + the dog, so it's plenty big enough.

I live in Fairfield County CT...also quite expensive.

 

[susy]

218.75 plus 211.00 for maintenance which includes cable tv , exterminator, and a service contract for plumbing, appl., electrical and A/C.

over 1000 sq ft/ 2 bedroom 2 bath condo/pool/sauna/on golf course/top floor/corner unit/15 minutes from beach (between Miami and Ft Lauderdale)/convenient locale/great schools/and 3 hours from Disney-need I say more?

Oops-we ARE in the middle of a hurricane-that's the downside...

 

[mom2grace]

Originally posted by melanie18
Our contract says the sale is "contingent upon seller finding suitable housing".

Is your current house going to be difficult to sell if this deal falls through?

Could you talk to the buyers about extending the contract for 30 after you get back from your vacation??

This would give you time to really weigh what you want to do if you haven't already decided.