Wedding Woes

WWWWD? (Long)

House related, of course.

We can get a loan if we call this an investment property. However, it would require us to put 30% down instead of 20%. We can swing it, but it means liquidating everything except our 401K. That means no e-fund, and pulling out of all our other investments.

Selling the house and condo back east would replenish our e-fund to a comfortable level. We hope that will be done by the end of the summer, but you never know. As far as day-to-day living, we'd make some cuts (my crafts, his starbucks) to help replenish our savings faster, but we wouldn't be living on ramen. Obviously, the additional down payment significantly reduces the monthly payment, and once we sell the other two properties we'll be saving those monthly payments as well.

So, all things staying the same, replenishing our savings wouldn't be that hard, and we're arguably better off in the long run since we'd be spending so much less in interest. That's H's argument.

But, I feel really uncomfortable about zeroing our accounts. We wanted to make some improvements to the house that we'd have to put off. We're also TTC, and having a kid kindof requires having money in the bank.

I also just don't know if I love this house enough to jump through so many hoops to get it. We're not going to find much better in our price range, so that argument is a little irrational, but it's still there.

Re: WWWWD? (Long)

  • **O-Face****O-Face** member
    10000 Comments Sixth Anniversary 25 Love Its
    edited December 2011
    I say if you aren't comfortable, don't do it.  End of story.
    image
  • hmonkeyhmonkey member
    Ninth Anniversary 10000 Comments 500 Love Its Name Dropper
    edited December 2011
    no emergency fund?  NO WAY.  and especially relying on selling the other properties as a way of refilling it. 

    really, there are more than four houses. 
    image
  • nicoleg1982nicoleg1982 member
    5000 Comments
    edited December 2011
    No way.  Just wait until the condo/house/whatever sells.  Esp. if you are TTC.  You can never anticipate what can/will go wrong once that fetus has been created.
    imageimage
  • TheDuckisTheDuckis member
    Seventh Anniversary 5000 Comments 25 Love Its Name Dropper
    edited December 2011
    I don't know why I wrote it like that. Selling the properties would replenish our savings to a comfortable level, which partially includes the e-fund. Regardless of whether the properties sell our e-fund would be back up and running within about 2 months.
  • 6fsn6fsn member
    Knottie Warrior 10000 Comments 500 Love Its Name Dropper
    edited December 2011

    Wouldn't do it.

    I am curious, are the interest rates the same on an investment property?

  • **O-Face****O-Face** member
    10000 Comments Sixth Anniversary 25 Love Its
    edited December 2011
    I'm still thinking that if you're already hesitant this just adds to that, hence my previous recommendation.
    image
  • edited December 2011
    I would NOT deplete my emergency fund for any reason. With my luck, the day after draining my account, we both would lose our jobs and I would get hit by a bus.

    I would concentrate on selling the other properties and TTC. The house you are in is perfectly nice for now.
    image
  • nicoleg1982nicoleg1982 member
    5000 Comments
    edited December 2011
    Is your H a drug dealer?  How is all of this money just being replinished and sht?  It would take me forever (esp. now) to save up all of my e-fund monies.
    imageimage
  • AuntFloAuntFlo member
    Tenth Anniversary 5000 Comments 500 Love Its Name Dropper
    edited December 2011
    FWIW, after living in several old houses with lots of "character" and now living in a home built in the last 10 years, I would pick the newer one a hundred times over.   Character is overrated.
  • TheDuckisTheDuckis member
    Seventh Anniversary 5000 Comments 25 Love Its Name Dropper
    edited December 2011
    The interest rate is .25% higher for an investment property, but we can re-fi when the other properties sell. At either interest rate, putting down 30% instead of 20% saves us over 500 a month.

    And yeah, I'm still leaning toward no. We're contending with the fact that CA laws are changing in September and 30-40% will be required on a lot more loans. H thinks if we wait for the condo to sell, we'll end up in the same boat with a property that's not as good a deal as this one, so we'll lose more in the long run. The truth is he got really attached to the house before the keys were in his hands, and now it's up to me to talk him down.
  • **O-Face****O-Face** member
    10000 Comments Sixth Anniversary 25 Love Its
    edited December 2011
    I thought he was all mr. toughshit?  It's just a house, really....there are more out there.  He needs to step back and look at it like a financial business decision.  No emotion or at least try to.
    image
  • TheDuckisTheDuckis member
    Seventh Anniversary 5000 Comments 25 Love Its Name Dropper
    edited December 2011
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_wedding-woes_wwwwd-long-1?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:47Discussion:28d09349-500d-47b8-a886-a53665800dd8Post:cb77c184-dc0f-4f94-95e8-e1006eeb45cb">Re: WWWWD? (Long)</a>:
    [QUOTE]I thought he was all mr. toughshit?  It's just a house, really....there are more out there.  He needs to step back and look at it like a financial business decision.  No emotion or at least try to.
    Posted by **O-Face**[/QUOTE]

    I know, it's ridiculous. 99 times out of 100 he's as pragmatic as they come, but now I have to be the rational one.
  • zsazsa-stlzsazsa-stl member
    Eighth Anniversary 5000 Comments 100 Love Its First Answer
    edited December 2011
    Don't do it!  If you are that desperate to buy a house, slash the price on the condo and get rid of it quick.  It would be a much wiser decision that eliminating your e-fund.
    image

    I just a friendly gal looking for options.

    Wedding Countdown Ticker
  • TheDuckisTheDuckis member
    Seventh Anniversary 5000 Comments 25 Love Its Name Dropper
    edited December 2011
    DC is a stable market and listings in that area are typically going in under 45 days. A few months is really 3-6 months in my head. I will be surprised if it doesn't go by the end of the summer, but even if it doesn't, we're not talking about a big difference in monthly payments.

    The sale of my house is guaranteed because it's going to my brother. We've slowed the process because the condo is more money and causing the bigger issue with the loan. But it's just a matter of finishing the paperwork and we'll get to subtract that monthly payment. Once that sale is done, new mortgage + condo is actually lower than rent + house + condo.

    That's why I'm so pissed about not getting the loan we were originally approved for. We could have put 20% down with no hardship, and handled the monthly payment with no hardship. But liquidating another 10% takes us outside our comfort zone.
  • VarunaTTVarunaTT member
    Knottie Warrior 10000 Comments 500 Love Its First Answer
    edited December 2011
    Seriously, I stopped reading your post and it's following justifications a paragraph in.

    IT'S A HOUSE.. That's it.  Not your future mate, not where you'll have babies, make a home. You can do that NOW.  Do not put yourself into any sort of precarious position at all.  I'm a worse case scenario person.. play out worse case scenario and ask if this house is really really really really x infiinity worth it.  Realistically...NO.  It's not and it will never be.

    Maybe something "right" won't come along.  But at least it's not "worse case scenario" y'know?
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