KennyTheKangaroo wrote:1.) When you made your down payment, did you feel like you pushed your self to the limits to make that down payment? Were you comfortable with the amount that you had left over in savings and such after you made the payment? In terms of total assets, how much did you spend on your down payments?
2.) In terms of paying rent vs paying a mortgage, how much did your monthly mortgage payment differ from your rent payment
One our first house, we had an FHA loan. So we had enough in savings to cover the down payment and still have a tidy bit of money left over, but we were still well short of 20%. (Hence FHA) We also had to do a fair bit of renovation on the home because the previous occupant vandalized it (leasing from the owner, who got foreclosed), so it was good we had the buffer. The money came from a few years worth of saving, and leftover money from our wedding registry. (We simply asked for people to contribute to our honeymoon fund, and our friends went guano loco with generosity. We ended up only using like 25% of that registry fund to pay for the honeymoon.) We didn't need to tap into any special assets or anything, just cash money in the bank.
Current house was conventional with a crazy low interest rate, and higher purchase price. But we sold the first house for a tidy profit, and had plenty of cash reserves. The only hiccup we had on this one was we waived the appraisal contingency to win a three-way bidding war. But our house had been completely renovated after being purchased from the last owner, and so it's last sales price was like 40% of what we were agreeing to pay. That triggered an appraisal review by the bank, which meant for a couple restless nights as we stood to lose our earnest money if the appraisal came in low and the seller didn't agree to a reduction. But everything came back kosher and we closed about a week late.
On the first house, we had a good but not great rate. So our mortgage ended up being about triple what our rent had been. But our rent was nowhere near market value (under $2k/mo for a 2br 1,000 sq ft apartment a block from the beach in Redondo....), so in reality the increase should have been only about 35%-40%. We got a much better rate this time around, and so even tho we paid more for this house than for the first one, our mortgage is like $1,000/mo less. That's just on the difference in interest rates. So our current mortgage is just a few hundred dollars more than what our rent at our last apartment would have been if the place had been priced appropriately.