NicksMama-Zack's Mama Too Posted November 22, 2013 Share Posted November 22, 2013 I would put as little as you can down to get a mortgage comparable to your rent. Keep in mind, you will be able to write off the interest and taxes on your income tax. Financial planner, Ric Edelman, has an interesting argument as to why you should not fear having a long mortgage. Your financial planner will probably like this plan as you will still have money to invest in stocks and other funds. http://www.ricedelman.com/cs/ordinary_people_extraordinary_wealth/excerpts#.Uo_HQ9IqjWA Fund an emergency fund. You might find some good savings rates at ING. Fund your retirement and make sure your husband maxes out his, especially if there is employer matching. I don't know if you work or not, but you can open an Individual Retirement Account (IRA) regardless of your working status. My dh contributes 5K (the max) to mine every year at tax time to take advantage of another tax break - last year it reduced our tax liability by $270. Both of our sets of parents saved for their retirements and it's been a real blessing that they've been financially independent. Open a 529 college savings account for your daughter. Even though you only have 4 more years to fund it, you will still get a tax break (I believe you can write off up to 4K per account/per year). 529 accounts are very flexible and your daughter can use the money for trade school, computers, and books as well as other traditional college expenses. Best of luck. Quote Link to comment Share on other sites More sharing options...
mytwomonkeys Posted November 22, 2013 Share Posted November 22, 2013 I would put as little as you can down to get a mortgage comparable to your rent. Keep in mind, you will be able to write off the interest and taxes on your income tax. Financial planner, Ric Edelman, has an interesting argument as to why you should not fear having a long mortgage. Your financial planner will probably like this plan as you will still have money to invest in stocks and other funds. http://www.ricedelman.com/cs/ordinary_people_extraordinary_wealth/excerpts#.Uo_HQ9IqjWA Fund an emergency fund. You might find some good savings rates at ING. Fund your retirement and make sure your husband maxes out his, especially if there is employer matching. I don't know if you work or not, but you can open an Individual Retirement Account (IRA) regardless of your working status. My dh contributes 5K (the max) to mine every year at tax time to take advantage of another tax break - last year it reduced our tax liability by $270. Both of our sets of parents saved for their retirements and it's been a real blessing that they've been financially independent. Open a 529 college savings account for your daughter. Even though you only have 4 more years to fund it, you will still get a tax break (I believe you can write off up to 4K per account/per year). 529 accounts are very flexible and your daughter can use the money for trade school, computers, and books as well as other traditional college expenses. Best of luck. We use ally bank. They have great rates for savings and CD's! :) Quote Link to comment Share on other sites More sharing options...
Scarlett Posted November 22, 2013 Share Posted November 22, 2013 Hey I double dog dare ya to go over to www.llnoe.com and ask that bunch for their opinion on what you should do. Quote Link to comment Share on other sites More sharing options...
brehon Posted November 22, 2013 Share Posted November 22, 2013 Well, even after reading your additional info my advice wouldn't substantially change. Pay off any outstanding debts Emergency fund (due to my my line of work, we're doing 15-18 months) Modest house Fully funded retirement 529 plan for eldest Quote Link to comment Share on other sites More sharing options...
Lolly Posted November 22, 2013 Share Posted November 22, 2013 Mine mighty change under your new information. I would not purchase a $300,000 house. In purchasing a home, I would be looking to lower, or even eliminate, my monthly payments from my rent, not match it. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted November 22, 2013 Share Posted November 22, 2013 Mine mighty change under your new information. I would not purchase a $300,000 house. In purchasing a home, I would be looking to lower, or even eliminate, my monthly payments from my rent, not match it. Me too. Quote Link to comment Share on other sites More sharing options...
Um_2_4 Posted November 22, 2013 Share Posted November 22, 2013 We also live in an area where $150K gets you not much for a house (ok a shack in a rough hood), so I can relate. I would still be for the house if you plan to stay there. It is maybe not a money maker, but it is stability. Here to rent a house in a "safe" neighborhood (not fancy) would run $2300 and up. I assume the same is true for your area and you just happen to get a good deal on your current rent??? If that is the case, you may get a rude awakening one day when the owner dies/sells and new owner either sells it or raises the rent BIG time (happened to us from $575 to $1250 for a 2 bed condo). We put a large chunk down on this house to make our payment lower (as a bonus you get a lower % also). DH already has a funded retirement acct through work so that was not a concern for us. Just be sure to check into taxes in the area and how much they can vary. I called about each one and found the maximum for each of the "special" taxes and how much longer each one has till it is finished. Quote Link to comment Share on other sites More sharing options...
twoxcell Posted November 22, 2013 Share Posted November 22, 2013 Buy a home for sure. Without a rental payment or mortgage you could put money aside monthly for savings. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted November 23, 2013 Share Posted November 23, 2013 We also live in an area where $150K gets you not much for a house (ok a shack in a rough hood), so I can relate. I would still be for the house if you plan to stay there. It is maybe not a money maker, but it is stability. Here to rent a house in a "safe" neighborhood (not fancy) would run $2300 and up. I assume the same is true for your area and you just happen to get a good deal on your current rent??? If that is the case, you may get a rude awakening one day when the owner dies/sells and new owner either sells it or raises the rent BIG time (happened to us from $575 to $1250 for a 2 bed condo). We put a large chunk down on this house to make our payment lower (as a bonus you get a lower % also). DH already has a funded retirement acct through work so that was not a concern for us. Just be sure to check into taxes in the area and how much they can vary. I called about each one and found the maximum for each of the "special" taxes and how much longer each one has till it is finished. yes I was thinking this earlier too....no guarantee that 1250 rent will stay at 1250. I just like the security of owning my own place. I would look for a fixer for less than 330K Quote Link to comment Share on other sites More sharing options...
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