| Which Way to Go? Home or Debt? |
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coaster
Senior Advisor
Cash: $ 1357.80
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Location: Wisconsin
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quote:
Originally posted by littleroc02us
Minneapolis must be one of the cheapest major metropolitan in the US.
Ya, maybe, I admit it's been over fifteen years since I've been out and about, but back then the Twin Cities would have been pretty reasonable compared to some of the other places I used to go to; Dallas and Atlanta seeming almost like second homes at times. Much has changed, though, I could be wrong about the present.
~Tim~
Eye Candy : Why Whimsy
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Wed Feb 01, 2012 4:54 pm |
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fast
Preferred Member
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Joined: 20 Oct 2009
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| Re: Which Way to Go? Home or Debt? |
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quote:
Originally posted by Atalien
The question is are we stable enough to make this move now? We are able to either pay down debt at a $1200 a month rate or save $1200 a month and pay minimums on the loans for a decent down payment at the leases end.
Could you pull it off? Probably. Would I do it? No way. I'd work on getting that debt knocked down.
Don't equate being able to afford monthly payments with being able to afford something. In many cases, people borrow money to buy things they can't afford to pay for; that's why they borrow--because they can't afford to pay for it.
My two cents. Sorry.
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Thu Feb 02, 2012 4:15 pm |
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Atalien
New Member
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Joined: 31 Jan 2012
Location: Atlanta
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@fast
No reason to be sorry, I'm asking the question because I myself have reservations about purchasing in this situation and it seems others do as well. While my monthly expenses wouldn't change, I would be now locked in because of the mortgage which could turn ugly if something happened.
@littleroc
Thanks again for answering another question. I understand your point of view, especially since you went through what you did.
Update:
After reviewing our budget it seems we have $1700 to put towards debt or save for a condo that does not include selling the car which we are looking into now. Which would put us at $2100.
We have separate main accounts and one joint account we pay bills from. I wasn't sure how much she had left over after paying bills and taking an amount out for herself so I was just using what I had left over which was $1200. So currently our monthly obligations are $3100, including the car, $2700 without and 5248 coming in after taxes and retirement savings.
Our plan more than likely will be to sell the car, and look for places near the end of this year. Building our emergency funds to 6 months, and using a FHA (3.5%) to purchase the condo.
In the event we don't find anything at that time (anything we like under 175k), we will pay off as many of the school loans with the cash on hand(excluding the emergency fund) and sign a shorter lease and continue looking.
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Thu Feb 02, 2012 7:04 pm |
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littleroc02us
Moderator
Cash: $ 205.35
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I think your thinking much clearer then you were before and that's great!
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
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Thu Feb 02, 2012 10:15 pm |
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