Ned some help in deciding

[thisistaken]

Hello everyone,

House-1:

Closing in December. 1 storey 2535 sq ft with 4 bed, study and 12 foot ceiling in living room. Price: 628K with 5.99 rate incentive by the builder. Great lot location in the community. After down payment  EMI is around $5100 @5.99

Lot size: 7542 sqft

Estimated payment	$5,245 /mo
Loan amount	$596,600
Down payment	$31,400
Interest rate	5.99%
Loan term	30 years
Taxes & insurance included?	Yes
Property tax	2.1 %/yr
Homeowner's insurance	$1,260/yr
Mortgage insurance	$378/mo
HOA dues	$90/mo

House-2:

Closing in March-April. 2 storey 3600 sq ft with 4 bed, study and open to below high ceiling ceiling in living room. Price: 753K. Lot location is somewhat in the corner of the community. No rate incentive. After down payment, EMI is around [email protected]

Lot size: 6332 sqft

Estimated payment	$6,968 /mo
Loan amount	$715,350
Down payment	$37,650
Interest rate	7.5%
Loan term	30 years
Taxes & insurance included?	Yes
Property tax	2.1 %/yr
Homeowner's insurance	$1,260/yr
Mortgage insurance	$453/mo
HOA dues	$90/mo

Unable to decide. I can afford both but I will have $1700 savings if I go with House-1. per/sq foot value is much better in house-2. Please advise.

March-April lo interest rates increase aite, malli above 8% aite kastam ani thinking. If I go with home-1, closing is in Dec and the lock is locked @5.99 by the builder. 

 

 

[ZoomNaidu]

If kids are there and u can afford it, go with a bigger one - not easy to move houses again and again. 

[Thokkalee]

Check bank rate calculator and look at the total interest you are paying over 30 years… your numbers seem a bit off.. are you doing 20% down? 

[rmJU72]

Bigger house is better if money is not an issue. Else after 2-3 years you will start regretting about the larger home you missed even though you could afford it.

[kittaya]

11 minutes ago, thisistaken said:

Hello everyone,

House-1:

Closing in December. 1 storey 2535 sq ft with 4 bed, study and 12 foot ceiling in living room. Price: 628K with 5.99 rate incentive by the builder. Great lot location in the community. After down payment  EMI is around $5100 @5.99

 

House-2:

Closing in March-April. 2 storey 3600 sq ft with 4 bed, study and open to below high ceiling ceiling in living room. Price: 753K. Lot location is somewhat in the corner of the community. No rate incentive. After down payment, EMI is around [email protected]

 

Unable to decide. I can afford both but I will have $1700 savings if I go with House-1. per/sq foot value is much better in house-2. Please advise.

What are the lot sizes for two .. 

 

 

 

[thisistaken]

Updated the details

[Skn_benami]

Since you said you can afford and I believe you have contingency plans, so option 2 is better. 

[perugu_vada]

you know better than anyone else man .. weigh down pros and cons side by side.. as home buying is a long term commitment .. 

all the best 

[FrustratedVuncle]

42 minutes ago, thisistaken said:

Hello everyone,

House-1:

Closing in December. 1 storey 2535 sq ft with 4 bed, study and 12 foot ceiling in living room. Price: 628K with 5.99 rate incentive by the builder. Great lot location in the community. After down payment  EMI is around $5100 @5.99

Lot size: 7542 sqft

Estimated payment	$5,245 /mo
Loan amount	$596,600
Down payment	$31,400
Interest rate	5.99%
Loan term	30 years
Taxes & insurance included?	Yes
Property tax	2.1 %/yr
Homeowner's insurance	$1,260/yr
Mortgage insurance	$378/mo
HOA dues	$90/mo

House-2:

Closing in March-April. 2 storey 3600 sq ft with 4 bed, study and open to below high ceiling ceiling in living room. Price: 753K. Lot location is somewhat in the corner of the community. No rate incentive. After down payment, EMI is around [email protected]

Lot size: 6332 sqft

Estimated payment	$6,968 /mo
Loan amount	$715,350
Down payment	$37,650
Interest rate	7.5%
Loan term	30 years
Taxes & insurance included?	Yes
Property tax	2.1 %/yr
Homeowner's insurance	$1,260/yr
Mortgage insurance	$453/mo
HOA dues	$90/mo

Unable to decide. I can afford both but I will have $1700 savings if I go with House-1. per/sq foot value is much better in house-2. Please advise.

March-April lo interest rates increase aite, malli above 8% aite kastam ani thinking. If I go with home-1, closing is in Dec and the lock is locked @5.99 by the builder. 

 

 

WTF is Mortgage insurance for? that too 450/mo? 

Ridiculous. If lender need Mortgage insurance its clear indication that you are at very risk in lenders eyes. 

Since you can afford its fine tho. 

2nd home if you love having big place and like to host things around. 1st home is easier to maintain. 

I will take 2nd home if I can afford.

 

[thisistaken]

Last week koncham decrease ayyai interest rates. Lender emo rates might come down to upper 6's in the Q1 2024 annadu. Any educated guess on the interest rates moving into 2024?

[Skn_benami]

2 minutes ago, FrustratedVuncle said:

WTF is Mortgage insurance for? that too 450/mo? 

Ridiculous. If lender need Mortgage insurance its clear indication that you are at very risk in lenders eyes. 

Since you can afford its fine tho. 

2nd home if you love having big place and like to host things around. 1st home is easier to maintain. 

I will take 2nd home if I can afford.

 

If you don’t take mortgage insurance, you will pay higher emi’s right?.

[FrustratedVuncle]

3 minutes ago, Skn_benami said:

If you don’t take mortgage insurance, you will pay higher emi’s right?.

Nuvvu home insurance teskovalsina pani ledu, but no lender will lend if you dont have home insurance.

Lenders demand what they want from you by assessing lending risks to you. Multiple offers unte they come down too.

At the end TS is paying 7% rate without mortgage insurance. 

[bschi]

Looks like you are doing around 5% down payment, try to put more towards down payment if possible which will bring down your EMI and Mortgage Insurance.

As long as you have more than 1 living room, you can go for House 1 which is single floor, 12 feet ceiling and 2500 sq ft. Of course, your backyard will be bit less when compared to House 2.

[Skn_benami]

2 minutes ago, FrustratedVuncle said:

Nuvvu home insurance teskovalsina pani ledu, but no lender will lend if you dont have home insurance.

Lenders demand what they want from you by assessing lending risks to you. Multiple offers unte they come down too.

At the end TS is paying 7% rate without mortgage insurance. 

Agree with what you said. In general they care more about the money they have lent and will always try to safeguard it with insurances. Customer will always get ** no matter what. 

[SaradaChinnodu]

bro, always bigger is better if you can afford and have kids. However, few things jumped at me 

1) I see you are putting down 5% only - so it seems you dont have much savings in hand. May be you can afford at the moment with your current take home, but if the payment is more than 30-35% of your take home, I would say its a risk and you should reconsider this whole thing. Just my opinion 

2) Make sure you have good emergency fund of "atleast" 6 month expenses including mortgage payments set aside before you get into this as the payment is on higher end. 

I hope you take a wise decision and enjoy home ownership!