MCOL, family of 4 TC: 300k (base 190k, rest is stocks) Stocks: $110k Crypto: $10k 401k: $100k Cash in the bank: $20k Expecting $60k worth of stocks (before taxes) in a month. Currently renting: $4k Edit: Targeting: $600-750k Edit: I know I’m not in the perfect state to buy. But here is my reasoning. I could be wrong though. If rates go down, prices will go up. A lot of people are waiting. If I wait longer, I might be screwing myself. If I buy now, I can refinance later, and potentially bank on higher real estate prices. If rates go higher, I better lock the deal now. I pay 4K for the rental property now. Extending the lease for another year is 48k. Even if my mortgage pay is slightly higher, that’s going to be *my* property, e.g. these 48k would go towards my equity. Yes, I will pay PMI, because of the 10% down payment, but once I get the stocks, I can pay more towards the mortgage. If rates stay where they are, prices will likely start slowly going down. But relying on the prices going down is the worst of both worlds, imho. We have 2 kids, elementary school, if we buy, we won’t be moving anytime soon. One of our kids starts middle school in 2025. What do you all think?
No
Updated the post. Target house price is 600-750k
MCOL? Most likely yes depending on the house you want to afford. Can get tight if you’re a single earner.
600-750k is what I’m targeting
You are so poor. Basically have no money saved up
How much cash are you planning to put down? If you only have $20k liquid that's not enough for a down payment
Yoe?
MCOL and rent is4k?while buying a home they ll look at your base pay. Your ranges seems fine can easily afford.
It is slightly less. I rent townhouse. 2,000 sq ft. $4k with bills.
Where's all your money going?
You don't have enough money and banks will not lend you with those savings. Interest will eat you. Find a cheaper place to rent and start saving instead of spending.
In my opinion, you should buy. You are already paying 4k rent so the mortgage will be a little more than 4k. 600-700k is pretty less you can eventually pay more to reduce the monthly payment.
But the monthly payment reduces after refinancing only, right?
OP just your interest may drop a little depending on market forces. If you do a Cash refinance and obtain some equity you will pay the new loan company the excess, increasing your mortgage . I agree with commenter based on your scenario. 4K on rent is too high. Divert Rent funds towards mortgage and start your equity build. Consider adjusting your lifestyle with 10k you should be saving at least 1.5K/2K monthly, just incase there’s a downturn/layoff, it can train you to be flexible.
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Updated the post. Target house price is 600-750k