memyselfi

This is an Approximation Loan Cost Illustration for a FHA Loan at 235,000 Origination Charge 350.00 Upfront MIP 2267.75 Downpayment 8000.00 (Plus the standard things I don't think will vary much, appraisal, recording fee, title ins, etc.) Monthly Payment 3.875% Taxes 166.67 Principal and Interest 1077.04 Insurance 54.117 PMI 215.55 It seems to me that the PMI (upfront and monthly) is expensive. Would it not be better for me to pursue the NFCU Homebuyers Choice Program with no PMI? I could use some of the money I'm spending on the upfront MIP to buy down the interest rate, and I won't have to spend 215 a month on Monthly PMI. Thoughts? Any other options? Edited to add: middle score is 787. Thanks

Thanks for your perspective. Moving around from apartment to apartment isn't going to be a long term solution, however, I hadn't thought about renting a townhouse or house. That's definitely something to think about! I know what you mean about a home being a ball and chain! I just moved here about 8 months ago and won't be moving any time soon! I have about 4 months of living expenses saved up, and would like to be in a position to save MORE! Being house poor just isn't an option for me! I'm totally ready to walk away from the process at any step!

Thank you. That was exactly the kind of answer that I was looking for. If anyone else has any thoughts, please feel free to add. Edited to add: I would like to be paying LESS than 1800 a month! I'm looking at either moving around yearly to keep up with the specials that apartment communities offer or making a purchase.

I would like to get an idea of what you would do given this situation: Salary 65000/ year Rent: 1800/ month SL: 360/ month (no other outstanding month credit) Live in a high COL area. Would you consider purchasing a home? If so...how much? I just want to get some ideas and see if it would be worth my time. I am ready for ownership. Plan to stay in the area for at LEAST 5 years. Started new job last year - in the same industry - a promotion of sorts. Thoughts?

You cannot use the graduated re-payment plan if you want to qualify for the forgiveness. You can use IBR, ICR, or Standard (only the 10 year option, if you are on a standard plan that is greater than 10 years those payments won't qualify. - but if you choose that option, you would have paid off your loans). Also, it's not only gov't employees that qualify for this. If you work for a 501 3c, firefighters, policemen, etc (there's a long list of professions) you can qualify for this program.

Without seeing your budge, my instinct is to say reduce expense and increase your cash flow. Reduce your cable, internet, phone, etc. Turn the thermostat down, conserve water, etc. in order to reduce your utilities. Get a part time job in order to make more money (I know, sounds easier than it is!)

Thanks for all the replies! It's interesting to see how people view this differently! I hope people keep it coming!

I'm curious about how long it took you to save an emergency fund. A few questions: Did you save x months worth of salary? How many? Did you save x months worth of expenses? How many? How long did it take you? If you don't have a fully funded emergency fund, I"m still interested in your answers! (Of course, just guessing how long it is going to take you!) Thanks!

I know I won't be able to be at the 50/30/20 ratios right away. Especially not until I consolidate my student loans, but it's a good goal that I'm going to work towards!

WOW! I see that you are saving WONDERFULLY! I usually use my net for everything because I *know* that gross means nothing, I was JUUUST making sure! Boy is it a big difference between gross and what actually hits your account! After I get settled into the new job and see where my money is actually going, I'm going to open another account to stash money..I already have a little saved up!

Thanks!

Is that 50% of your gross or your net?

Also, this is SOOO HARD! I admit, I'm part of the "me" generation. And the generation of "I went to school for x amount of years and I deserve this." But I'm going to resist the temptation of getting a car with a 500.00 car note just because I can, or doing a whole bunch of excessive shopping! I've read too much on this board to do anything else!

Thanks for all of the advice. I'm also working a part time job, so my goal is to save that entire check and really to never see it. I need to open another savings account that I don't have easy access to and have my direct deposit transferred to that! My goal is to have my car payment be less than 300.00 a month. I wouldn't want to pay more than that at all! I also know that I need to eat in more!

I have federal student loans that have yet to be consolidated. Where can I find information on what the interest rate is now? Also, my plan was to wait until this summer and see if the ineterest rate was likely to go down. Is it wise to wait and see what the feds do to the rate or to consolidate now? Does that have any impact on student loan rates?