So my fiance I have decided it's time to get serious about trying to buy a house. We are getting married on Oct 6 and its very likely that there will be kids and our 2bd 2 bth 894sq condo is already driving us crazy as its just way to small. It's sickening what we pay seperately each owning a condo. together between two mortgages and two sets of condo fee's we pay $2700 a month, thats one hell of a house. But we are looking at a mortgage more around the 2200-2400 range possible even less depending on what we find.
Currently, like millions of other people, we are not in a very good situation with what she owes on her condo and what they are selling for. Based on recent condo sales in her Condo units, we are roughly $15,000- $20,000 upside down. However, we are in a pretty good situation to resolve this problem in a relativley short period of time.
I also own a condo that i rent, in which I will be having new tenants move in January 1st at $1100/m on a 1 year lease which will renew to a month to month lease after that year. Awesome. If i don't have renters no biggie i can still afford the mortgage but can't save.
We currently have 6k in savings. This we don't touch. It stays put.
My plan: We are currently saving $575 a month in our savings account. We will no longer do this. I get $1100 in rent. Combined this is $1675 a month. This new amount will get applied to an EXTRA principle payment each month on her mortgage on top of her regular mortgage payment. Extreme times call for extreme measures.
The good news. Besides not putting money into savings, this has abolsutely no effect on our current lifestyle. nothing changes. We both pay what we have been paying as we do now and live as we do now.
The numbers: Here is the break down of how this payment effects the mortgage: As you can see from the chart below, year 4 is where we are at today. We are starting this plan this month. So essentially year 4-5 will be 12/2011 - 11/2012. She will go from 149,486 to 126,167. The condos are selling between 130k-139k.
Once November hits, we will put her Condo on the Market and when it sells I will terminate the lease on my condo and move into my place and save that $1675(cause now she won't have a mortgage) towards a down payment towards a house and put my condo up for sale which i anticipate breaking even on.
Any thoughts on this? Can anyone see anything different(besides saying stay where we are, this is not an option)
Currently, like millions of other people, we are not in a very good situation with what she owes on her condo and what they are selling for. Based on recent condo sales in her Condo units, we are roughly $15,000- $20,000 upside down. However, we are in a pretty good situation to resolve this problem in a relativley short period of time.
I also own a condo that i rent, in which I will be having new tenants move in January 1st at $1100/m on a 1 year lease which will renew to a month to month lease after that year. Awesome. If i don't have renters no biggie i can still afford the mortgage but can't save.
We currently have 6k in savings. This we don't touch. It stays put.
My plan: We are currently saving $575 a month in our savings account. We will no longer do this. I get $1100 in rent. Combined this is $1675 a month. This new amount will get applied to an EXTRA principle payment each month on her mortgage on top of her regular mortgage payment. Extreme times call for extreme measures.
The good news. Besides not putting money into savings, this has abolsutely no effect on our current lifestyle. nothing changes. We both pay what we have been paying as we do now and live as we do now.
The numbers: Here is the break down of how this payment effects the mortgage: As you can see from the chart below, year 4 is where we are at today. We are starting this plan this month. So essentially year 4-5 will be 12/2011 - 11/2012. She will go from 149,486 to 126,167. The condos are selling between 130k-139k.
Once November hits, we will put her Condo on the Market and when it sells I will terminate the lease on my condo and move into my place and save that $1675(cause now she won't have a mortgage) towards a down payment towards a house and put my condo up for sale which i anticipate breaking even on.
Any thoughts on this? Can anyone see anything different(besides saying stay where we are, this is not an option)
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