So I’ll preface this with saying: Im a software program engineer. The corporate has rising income.
My earnings: $125k (final two years taxes are a bit much less, in all probability round $105k/12 months). With 80% optimistic will obtain a 22% bonus in Q1, there’s a signed doc on how bonuses are to be allotted.
Loans / Debt Obligation:
$25k in non-public scholar loans @ 2.86% curiosity. $320/month
$22k automobile mortgage @ 3.25% curiosity $420/month
$40k @ 4.25% federal scholar loans $236/month
$6k in 0% bank card debt by means of April 24
Minimal: 1 month hire for lease break and 1 month for contract termination, assuming they couldn’t discover one other occupent.
$18k in financial savings account
$17k in retirement accounts break up roughly 50/50 between a 401k and Easy IRA.
At the moment renting at $2550.
So my intestine says I can’t afford a home but and I ought to anticipate the bonus earlier than considering.
A pal informed me a couple of home for promote close by them that’s a bit beneath market charge at $410k. I did a pre approval and obtained an rate of interest at 6-8% relying on factors. With a 3% down fee and 0 factors, the month-to-month fee can be $2600.
I don’t have a need to make any massive strikes quickly (2 years and no actual need after that both). The home would have new plumbing, siding, and carpet. However would anticipate to want to replace some extra stuff to make it extra fashionable for my job / consolation / home equipment which may break.
Transferring could possibly be dealt with with a U-Haul, so no shifting firm wanted. Simply pizza.
The NYT calculator stated if I may hire for below $3.4K it could be a superb resolution to maintain renting my residence.
I’m uninterested in chunking away $2600 in hire each month, but additionally don’t need to be the wrong way up in a home at an enormous rate of interest.
I believe I do know the reply however would admire ideas?