I hate that most of my blog posts focus around home ownership, but I’m not gonna lie, it’s been on my mind a lot lately. Girl Ninja and I are doing our best to save up $100,000 so we can have the freedom and flexibility to buy what we want, when we want it. Working towards a specific dollar amount helps keep our goals clearly defined.
Although we are still another year (or two) away from becoming home owners, we are anticipating the purchase price of our future home will be between $300,000 and $400,000. In order to meet the 20% down payment guideline, we’d need about $60,000 to $80,000 in our future house fund.
If you check out that little savings bar on the right hand side of my blog, you’ll notice the wife and I have $50K in the bank. If we were to buy a $300,000 house today, and we used all $50,000 we have to our name, we’d only be putting down 16.67%. Which, last time I checked is, not 20%.
Continuing on with this game of hypothetical situations…
Putting $50K down on a $300K house, leaves us with a $250K mortgage, or a roughly $1,600 monthly payment (assuming 30 year loan at 4.6%). We were paying $1,500/month in rent for a one bedroom condo down in San Diego, so a $1,600 mortgage payment on a 3 bedroom house sounds pretty darn appetizing…and very reasonable according to my budget. But the 20% Nazis will say I’m not yet ready to be a home owner. Are they right?
My question for you all is simple… Is a 20% down payment still relevant? If you own a home, did you put down 20% when you bought? If you haven’t bought yet, how much do you think you will ACTUALLY put down?
My guess is Girl Ninja and I will put down no less than 10% and no more than 20%, obviously dependent on home price and interest rate on the loan. Who knows what we’ll end up doing, but it’s important to start thinking about these things now. They don’t call me Planny McPlannerson for nothing
p.s. Girl Ninja has a blog post that will be going up at 10:00 a.m. PST, so be sure to check back in for that.
p.p.s. Her blog post last Friday is now my most popular post of all time….I hate you all!!!