Recent First Time Home Owners are confused with Mortgage Payments

[pakeer_saab]

2 hours ago, dreamchaser said:

Please advice me.I am 40 and i got GC recently.Have been working in US since last 15 years.single income.one kid.Planning to put down 300k downpayment on a 550k home in Arizona and rest mortgage.that way my monthly mortgage will be less than 2k.Is it a wise decision?

absolutely should go ahead

pay 200K instead and keep the 100k in FD, as you settle down in home, pay more towards mortgage

do not lock all your cash in home itself, you need cash to survive this job mess too.

[Thokkalee]

8 minutes ago, Variety_Pullayya said:

amortization schedule theliyakundane mortgage loans theskuntunnaru anukuntunnava? 

another thing is many payoff the loans in 5-6 years. so ppl dont actually keep them for 30 years. 

Some people only know about the monthly payment.. but they have a lower estimate of the other expenses.. for eg, apartment lo renters insurance will be $20 but home insurance in Texas is on average $300-$400

How do you pay a 400-600K loan in 5-6 years?? 🤔 looks like you fall into the rich ppl category.. 😄

[dreamchaser]

55 minutes ago, Thokkalee said:

Are you putting all your savings towards the down payment? If not, that is a good idea.

If yes, I would suggest you to have at least 50K in rainy day savings and put the rest towards the down payment.. 

Also, Take a 15 yr loan instead of a 30 yr loan if the numbers works for you. On a 15 yr loan, you pay very very less interest on the loan over the loan term and you will be loan free by the time you are 55 max..

not putting everything into downpayment bro.have some emergency funds too as backup

[Thokkalee]

1 minute ago, dreamchaser said:

not putting everything into downpayment bro.have some emergency funds too as backup

Good.. if it is affordable, definitely try for a 15 yr loan.. or a 20 yr loan.. you will be surprised on how much you will save by going for a shorter term.. 

[dreamchaser]

9 minutes ago, Thokkalee said:

Good.. if it is affordable, definitely try for a 15 yr loan.. or a 20 yr loan.. you will be surprised on how much you will save by going for a shorter term.. 

yes.that is my main intention bro.I want to save money on interest by putting as much downpayment as possible

[Thokkalee]

29 minutes ago, dreamchaser said:

yes.that is my main intention bro.I want to save money on interest by putting as much downpayment as possible

Get the 15 yr, 20 yr and 30 yr rates and use this calculator to get the monthly mortgage and total interest you will pay over the loan term

https://www.bankrate.com/mortgages/amortization-calculator/

[yemdoing]

4 hours ago, FrustratedVuncle said:

Homestead applicable for all homeowners who live in that home kada anna

First year after purchase homestead not applicable. So govt can raise property taxes without cap of 10% . This is in Texas 

[Peddayana]

I feel Interest rate, APR difference telvakunda mortgage teesukunevallu undaru, especially mana tejams, they are too smart for their own good,

I do agree with some other points in this thread though

I also think they know the risk etc, every one I mean everyone knows the risk, but how do I say it? its like an itch you can't scratch if you can't buy a home now, this could be attributed to the proliferation of stupid u tube vlogs by vaunties and vuncles showing off, created a fomo and desire among everyone that with out a home, you 'did not make it yet' in US, now Home, Tesla have become symbols or more like statements to their relatives back home and to everyone they know to say 'they did indeed make it'

8-10 years back, very few folks desis owned homes, during covid/after covid, there was a rapid increase in dual incomes among desis, given that the new normal is to have house-hold incomes greater than 250k-300k as a couple, lot of folks are opting to buy home instead of renting, it definitely makes sense if you have enough cash and can do a good downpayment but enough cash lekunda (atleast 20% for downpayment and 10% as backup) with the current interest rates and economy is being plain stupid

also, listen to the news but don't blindly believe it, observe the trends, day to day things you see, they are the best indicators of how the economy is doing, we are going into election year so it will be all-out effort to keep the economy float (just until the elections are done), whoever wins will have a big task on their hands to get the economy back on track and it will take several months for sure , so we are in for a tough 2025 logical ga think chesthe, I hope I'm wrong and nothing happens but if there is a recession on cards,it will be a bad situation for folks who are over-leveraged.

I will not say to stop buying homes but please do keep backup money for at-least 1 year of expenses if you lose your job, up-skill yourself meanwhile and be ready for any bumpy rides 

just being aware of the risk does not mean anything, take active action and be prepared bhayyos, db is a stupid but slightly fun place, hope I see good news rolling or even stupid politics discussion rather than job loss or having difficult situations..

 

 

[FrustratedVuncle]

4 hours ago, yemdoing said:

First year after purchase homestead not applicable. So govt can raise property taxes without cap of 10% . This is in Texas 

1yr not applicable Ani em ledu. You can request homestead once you prove your are living there. They will send refund. Dallas e manadi kuda

[Balibabu]

Uhu

[mettastar]

10 hours ago, dreamchaser said:

yes.that is my main intention bro.I want to save money on interest by putting as much downpayment as possible

300k cash unte .. emanna income producing property vasthademo chudu .. like making 10% returns .. that you can use for home mortgage payments .. 

 

[dreamchaser]

18 minutes ago, mettastar said:

300k cash unte .. emanna income producing property vasthademo chudu .. like making 10% returns .. that you can use for home mortgage payments .. 

 

dont have primary home yet. so not interested in investment properties.basically i want to save money on mortgage interest by making big down payment

[Sucker]

House ante family memories nundi real estate biz stage ki vachaka inkenni chusina waste muchata anna. Sad part everyone can't afford ippudu house anedhi basic necessity dhanni real estate mafia chesi 10ngaru. 

[Sonu_Patel]

40 minutes ago, Sucker said:

House ante family memories nundi real estate biz stage ki vachaka inkenni chusina waste muchata anna. Sad part everyone can't afford ippudu house anedhi basic necessity dhanni real estate mafia chesi 10ngaru. 

very sad anna.. people finances are ending up pathetic with high interest rates and inflation.

[yemdoing]

3 hours ago, FrustratedVuncle said:

1yr not applicable Ani em ledu. You can request homestead once you prove your are living there. They will send refund. Dallas e manadi kuda

You are right , upto 2021 homestead was not applicable for first year . Starting 2022 they changed rules . 
 

did you buy after 2022 ?