We didn't go with what the calculator told us we could afford. We went with what we comfortably could afford. Before even speaking with builders they want to see your pre-approval letter showing what you are at least pre-approved for. We were pre-approved for up to just over $500,000...we did not buy a house that price just because the calculator and pre-approval letter told us we could.
I also could have qualified for a more expensive home than I bought.
I myself wouldn't have put 3.5% down either. That was our friends that did that. They put down a down payment of just over $5,000. I do believe they did an FHA loan. We did a conventional loan. And I do agree in their situation their equity is not really there. Maybe it might be now since they've been there for 3 1/2-4 years and then did some interior upgrades and the market there has upped a bit (their location plays a large role in their cost) but our situation is different. We had equity the moment the house was completed. New build housing costs raised half-way through our home building process. Also the Developer 2 weeks before we reserved our lot raised every single empty lot they own in all of our metro (both sides of the state line) by an arbitrary $5,000 just cuz.
When you do eventually have children, you may want to rethink the bolded. The government absolutely expects middle class parents to save (for 18 years) and pay for the bulk of their children's college education. Financial aid is made up mostly of loans, not free money, and students can only borrow a small amount of money all on their own. The rest of the loans must be cosigned by parents. Say the parents cosign the huge loans (huge b/c even pubic universities are running $25000 to $30000 a year for instate students now), and make the kids responsible for paying them off. The kids then start their professional lives saddled with HUGE amounts of student loan debt that will take decades to pay off! That is a terrible way to start grown up life! You have to start saving for your children's college the minute they are born.
Trust me I know...I put myself through college and saved money for it as well as getting loans. My husband's family paid for the first year of college and his sophmore year they paid for one year of his apartment. He ended up with the same debt as me. My mother had bankruptcy to deal with and my father was out of the picture. I knew for years that college was on me. Not everyone has their parents financial backing. My husband's family wanted to help him out but to a point.
Yeah you know it's like the link the in the first post. There has been much discussion about it based on very simple metrics (your state, your metro area, your household income before taxes, and the number of people in your household). Four items to show you what class you are in. Multiple people have said the don't feel in ___ class don't feel like it because of x,y,z and even if the metrics tells them they are in that class they personally don't feel like it. Same with the mortgage calculators..limited information.
Get back to us in 20 years when your children are starting college and costs have skyrocketed and let us know how that plan is working for your child.
Thanks but I rarely like the whole attitude on the DIS with the "yeah get back to us when x,y,z"
The point is people who have been there done that are telling you your plan won't work. I guess you'll figure it out, but by that time it will be too late.
Frankly I think people are getting the impression I'm going to leave my future kids high and dry. That's far from the truth. But my husband and I have values, that apparently don't match with other people and that's fine, everyone has their own values. Part of our values doesn't involve footing the entire college bill. And as far as the government goes it's one thing they haven't caught up with..parents are not the sole provider for college funds 100% of the time. It means nothing to someone who is expected to pay their own way or most of their own way what the government says their family should be able to contribute based on their parents income. Unfortunately FAFSA in its current state is unlikely to change. It helps to prepare people for expectations. I would never just tell my kid at 17 when they are getting ready for college that "hey..yeah...btw"
Yeah ok we're done. Can't say anything nice so just going to leave it.
See and that's perfectly fine that you want to pay for all of your kid's education. I see nothing wrong with that. But then why is it wrong for someone to not want to pay for all or most of their kid's education? Think about it this way I still got a good job, my husband got a good job, we paid for our wedding/honeymoon, I bought my own car and still drive it 11 years later, my husband bought his own car (minus $2,000 that his parents owed him) and he still drives it nearly 7 years later, we have our house...and we had student loans. It's not to say our own experience could ever be replicated but we don't in any consider it a detriment that we paid for most of our college. What I was not so nicely being told is that my value is wrong. I appreciate that you did not say that but instead said that my choices are different than yours.
