Incoming Salary vs Principal Interest with 5% down payment for home purchase

[Bendapudi_english]

8 minutes ago, Sonu_Patel said:

400k - 450k budge lo houses ravadam ledu.. do you think there will be a crash like 2008

Nuvu illu kontaniki market crash avamanatava anna, nuvu konedhi ledhu petedhi ledhu, almost 2 years nunchi ivve threads vesthunav, nenu jump 

 

[Aquaman]

6 minutes ago, Sonu_Patel said:

aaa budget lo ravadam ledu vayya

Your mind might not be accepting homes in less than 500k range?

Clear your mind and erase , stop thinking and looking at homes priced more than 500k.   

[manchulomajjiga]

6 minutes ago, pandu123b said:

aa budget lo unnavi neeku anatledu ani cheppu brother

Very true , anasuya dorakatledu anukovatam kante mana budget tho mingalemu anukuni silent ga vundatam better 

[ForEverJava]

1 hour ago, Ravi860 said:

Buying house is usually good… what’s going on now is worst combination in housing market “Higher Priced Homes and Highest Rates Ever” so will be pain paying monthly EMIs

Ee Mata nenu 2021 chepite ee forum lo chala mandi cheppavu le annttu edicharu..naku telisi who ever did not buy suffering now.. I mean for everyone house is not a need... but need unnavallu should have made decision early

 

I am hearing even bachelor's and opt meeda unna friends kooda bought investment homes in 2000sft range in argyle and Northlake and Savanah (sutton fields Paloma creek) and sold houses and made money and flipped into bigger homes like 4000 sft in frisco little elm prosper mckinney celina border areas..

 

Home equity baga Kalisivschindi last 2 years lo..konta mandi 5% down chesi koni 2 yrs ayyaka reevaluated cheyinchi same rate of loan and removed pmi also

[ForEverJava]

1 hour ago, yemdoing said:

tappu ledu uncle... kastarjeetham kada. Also its not a commitment of 1 month of 1 year. 30 year loan commitment kada.

 

Ee thinking lone problem undi uncle..general saturated market  ile between 2012 to 2019 times laga ite okay ...but in housing market of last 2 yrs this thinking won't work..

[ForEverJava]

1 hour ago, veerigadu said:

Actually, he is analyzing it from different perspectives. Rather than just jumping into the pond. I think that’s good. 
 

Half of the people in our db brought houses without knowing anything about amortization. Valla tho compare sesthe he is atleast thinking. 

Nenu ade cheptunna ..saturated market lo thinking works..last 2 yrs lo unna market lo ppl who ever jumped in market made it big ..ppl who were overthinking etu kakuknda poyaru...

[Pandubabu]

1 hour ago, Sonu_Patel said:

 

Happy Monday folks! 

oka average salary 130k lo manaki chethiki ochedi  ~91k after all taxes(~30K) ... some people contribute to 401k, health or other deduction.. ila chestey net inka takkuva vastadi. but manam janaalaki 130k salary ani cheppukuntaam. 

In the same case, If we purchase a home for 750K for example, with having 6% interest rate for 30 year loan term... 

Princial will be $712,500 (with 5% down payment )

Interest will be $538,240

point entate.. manam actually buying home for $712,500(Principal) + $538,240(Interest) = $1.25 Million. 

 

mari manam 1.25 million ki kontunnam ani enduku cheppukomu. 

 

This is overthibking . A dollar today is fraction of a dollar  after 20 years ..in that case,  you are not paying full dollar .. so make calculations again considering inflation,  dollar depreciation😀

[ahimsavaadhi1]

2 hours ago, Sonu_Patel said:

 

Happy Monday folks! 

oka average salary 130k lo manaki chethiki ochedi  ~91k after all taxes(~30K) ... some people contribute to 401k, health or other deduction.. ila chestey net inka takkuva vastadi. but manam janaalaki 130k salary ani cheppukuntaam. 

In the same case, If we purchase a home for 750K for example, with having 6% interest rate for 30 year loan term... 

Princial will be $712,500 (with 5% down payment )

Interest will be $538,240

point entate.. manam actually buying home for $712,500(Principal) + $538,240(Interest) = $1.25 Million. 

 

mari manam 1.25 million ki kontunnam ani enduku cheppukomu. 

 

That’s why buying a home with 750k or 6% doesn’t make sense for a 90k take home salary 

[ForEverJava]

1 hour ago, Sonu_Patel said:

ilant maatalu chaala paddanu vayya... but please answer my question.

Ilanti market lo risk taking mentality kavali..I mean kondeamm taruvata edi aite adi ayyiddi chuddam anna type lo undali..mynfriend single working mckinney lo konnadu 380s al unna house 430 petti ..initial ga konchem regretted but market bubbled so much me and him sold houses for 600k and then flipped houses so happy now..planning to do similar thing with investment homes and 1030 (like buy and sell ) make profits now as long market volatility continues..even konta mandi tellollu doing same near sherman anna Melissa Savanah pilotpoint Bonham 

[Ravi860]

22 minutes ago, ForEverJava said:

Nenu ade cheptunna ..saturated market lo thinking works..last 2 yrs lo unna market lo ppl who ever jumped in market made it big ..ppl who were overthinking etu kakuknda poyaru...

I agree with you.. only folks are in good equity are who bought in 2021 or before (lower rates and prices rise). With recent downtrend (starting July 2022 when rates starts to spike up..) half of the folks bought in 2022 are in already in or close to being underwater 

[SRK_SRK]

house is a luxury item which you and your family enjoys, don't look it as an investment.
buy it if you can afford period.

always be ready to lose some $ amount just like you lose for a luxury car.

Antha bagunte you will make profits but in general market considering inflation, interest payments, house/dollar depreciation you will not make money out of a house so don't look it as an investment.

 

[bankris]

2 hours ago, veerigadu said:

Actually, he is analyzing it from different perspectives. Rather than just jumping into the pond. I think that’s good. 
 

Half of the people in our db brought houses without knowing anything about amortization. Valla tho compare sesthe he is atleast thinking. 

Half of the DB yendhi bossuuu. half of the Indians living in USA dont know what amortization is.. When I asked them if they ever checked amortization schedule, they just kept blank face and are very eagerly asking me details...:)

[yemdoing]

49 minutes ago, ForEverJava said:

Ee thinking lone problem undi uncle..general saturated market  ile between 2012 to 2019 times laga ite okay ...but in housing market of last 2 yrs this thinking won't work..

Yes it won’t work for last two years you have to make a quick deal . But aggressive ga illu tisukoni and 50% take home on house mortgage ki petti house poor avvadam kuda correct kaadu . 
 

 

[Aquaman]

42 minutes ago, ForEverJava said:

Ilanti market lo risk taking mentality kavali..I mean kondeamm taruvata edi aite adi ayyiddi chuddam anna type lo undali..mynfriend single working mckinney lo konnadu 380s al unna house 430 petti ..initial ga konchem regretted but market bubbled so much me and him sold houses for 600k and then flipped houses so happy now..planning to do similar thing with investment homes and 1030 (like buy and sell ) make profits now as long market volatility continues..even konta mandi tellollu doing same near sherman anna Melissa Savanah pilotpoint Bonham 

You took calculated risk. Also you and your friend got bit lucky there by selling at market peak time .

Here OP income is 130k aiming for almost 800k home. This is not at all good for monthly payments with current interest rates.

He has to cut down expectations look got decent size homes or else buy preowned homes within his range.  

[k2s]

2 hours ago, Sonu_Patel said:

 

Happy Monday folks! 

oka average salary 130k lo manaki chethiki ochedi  ~91k after all taxes(~30K) ... some people contribute to 401k, health or other deduction.. ila chestey net inka takkuva vastadi. but manam janaalaki 130k salary ani cheppukuntaam. 

In the same case, If we purchase a home for 750K for example, with having 6% interest rate for 30 year loan term... 

Princial will be $712,500 (with 5% down payment )

Interest will be $538,240

point entate.. manam actually buying home for $712,500(Principal) + $538,240(Interest) = $1.25 Million. 

 

mari manam 1.25 million ki kontunnam ani enduku cheppukomu. 

 

very good point.