We got pre-approval for a $1.2M loan, with 5% down. The rate is 6% and monthly will be $8,300. Buying a single family home in Excelsior/Portola. Am I making a good decision? TC: 400k L.E. Thanks everyone for being so unanimously against this idea. Ran some more scenarios and the math makes more sense at about half the loan/property value and a 3.6% rate with 16% down --> net $52k over my renting scenario in 4 years vs the net -$160k @ 6% junk scenario. There should be a warning on these loans, just like on tobacco
No you are not, put 20 down or wait
Also, 6% is awful
Correct. Horrrible decision from any angle. PMi will kill you. Put in 20% or rent.
There's no PMI
6% is horrible no matter what
Lul wtf $8300/mo? How much are you gonna have left for literally anything else? That's six figures per year...after taxes
It's 99.6k actually. And our plan is to refi as soon as we hit 20% equity
What is your cash comp? I can't imagine paying that much for a mortgage unless I was pulling in at least 300k in cash per year
The dumbest idea ever
Dumb. No way this is a sound decision. Rent. Your home expenses and mortgage interest will greatly outweigh any potential equity gains vs what you lose in renting. The fact that you have to ask this question is an indication you already know it's a bad idea.
Yep, I said we're considering, not that we bought :) paid a few 00,000s in rent in the past 4 years here so got us thinking
No freaking way. Remember there is property tax too!
OP won’t be able to run the a/c or lights either
Property tax would be in that monthly payment amount ya?
You are literally the reason the housing market crashed in 2008
Good thing I wasn't of age back then to even try haha
It does not sound like a great decision, no.
No. Put 20% down. 6% rate is insane