My dad forwarded me an email that said he could get a home loan for 2.75%. He said, “for what it’s worth, your mom and I could help you and you could maybe qualify for a 5% down FHA loan.” My first thought was, thanks, Dad, but no thanks. I mean he reads this blog, doesn’t he know I have student loans to pay? And a car loan?
But then I thought, well, 2.75% is a really great rate. Maybe it’s time to rethink my rigidity?
Now that I’m no longer in a long distance relationship, I know that I’ll stay in Portland. When I was dating the voice of reason, I wasn’t sure if I’d stay in Portland, or if it would be easier to relocate? Now that it’s just me, I’m certain my life is in Portland. Which got me thinking about whether it’s time to put down roots.
So, why not buy something? Can I afford to buy something? And furthermore, if I can afford to buy, what can I afford? I’ve been paying rent my whole life, and even with all that rent, I’ve been able to pay nearly $14K toward other debts — maybe I should be saving that money and think about buying a house?
This has been a fun exercise thus far. I mean, why not build my own equity (rather than my landlord’s)?
My gut feeling is that I can’t afford anything over $200K. My parents said they’d help. Zillow.com has been really fun so far.
- Student loan does not need to be paid again until November 2014. It is at 4.75% with some of it coming back to me. Let’s call it 4% for simplicity’s sake. This figure is right around $3700.
- Car loan is right around $4200.
- I don’t carry a balance on my credit cards, and if necessary, could stop using them altogether.
- According to these calculators, I could pay about the same toward a mortgage as I currently do toward rent.
- I will not buy something with only one bedroom. I can joke about 29 cats all I want, but buying something that small says, “please, no one visit, ever.”
- I do not want to own something bad enough to buy in a less desirable part of town. I’ve greatly reduced the amount of stuff in my life, and can live simply in a small space, especially if it’s in a neighborhood I adore.
- I am not against buying a condo, provided that the fees aren’t ridiculous.
So, friends, what do you think? I’m planning on meeting with someone at the credit union to see if this is at all feasible. But I’d like to know — is it a good idea, even if I have to get help from my parents?