.webp?h=8 "Merry Fistmas!")
I've been at my current job for over a year now and it's got solid pay ~$60k/yr. I've still been bumming it at my parents with the goal moving out by buying my own place - likely with a friend who'd pay me rent.
However, with the housing market as it is with 8% interest rates and low supply it seems I'm stuck kicking back with my parents again.
At the same time, I feel like I'm stunting my development as I'd held off any serious relationships until I have my own place.
Renting doesn't seem ideal unless my parents kick me out (unlikely, we all get along and I pull my weight) as I just see it as lighting money on fire I could be saving for an actual house.
ATM I'm thinking of bitting the bullet for inflated interest rates as I'm in a good place financially (I have zero debt) but it does make me concerned that the “you will own nothing” seems less and less like a conspiracy theory for the Zoomer generation.
Is this r-slurred? What is the best move here?
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see https://rdrama.net/h/peakpoors/post/199620/someone-good-at-economy-what-are/4865887
20% down is important, less than that you'll get a higher interest rate + PMI fees. A good lender will analyze different scenarios and they'll tell you what the difference is in your monthly payment. You can calculate it yourself too if you know how to do it.
What really matters on affording a mortgage is what % of your income it comprises. If the payment fits your budget, don't worry about 8% interest. A house is a long term thing and you'll most likely see interest rates drop eventually. Rule of thumb on refinancing is that a 1% drop in interest rates usually pays for itself over the lifetime of the loan (but do the math to get an exact answer first, it depends on the rate, principal, and term remaining). At 8% you can reasonably hope to see drops of 2% or more in the future if you are patient enough.
Don't rely on a roommate, be prepared to pay the mortgage on your own. A roommate isn't a bad idea if you want to use the rent money to pay down extra mortgage principal or improve the house, but that income shouldn't be taken as a given. Also beware bad tenants and be prepared to deal with local laws wrt rental contracts.
Check your credit score and optimize it if you can.
If you're not doing it already, stuff your savings into a money market fund, most of them are earning 5% interest now.
Make sure you have a cash buffer left over to fix anything that might be broken or will break in the first couple months of owning the house.
Take your time. You can afford to wait and save more money. You're already saving an unbelievable amount of opportunity cost by not paying rent + utilities.
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That degree finally paying off
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