The Nest – Buying a Home, Money Advice, Decorating Ideas, Easy Recipes

Message Boards | Recipes | Nestie Blogs
Decor Ideas | Tools | Buying Guides

community

all boards

my blog

my photos

my boards


200+ Easy Weeknight Meals!

Green living: Eco-friendly tips & tricks!

< Previous topic | Next topic >

All Boards > Money Matters

Sort:
12-17-2012 at 12:51 PM
heyitsme
Not Ranked
Joined on 02-19-2007
5,097 Posts
8,832 Points
heyitsme is not online. Last active: 05-17-2013, 6:38 PMSilver

Finances question

DH and I take home approximately $70K/year after taxes, paying into retirement, etc.

We have a savings account with $72K of money in it. We don't really earmark that savings for one particular thing but dip into it when we need the money (for example, last year we bought a car for me and paid cash when my old one died).

We have monthly expenses but no debt at all (no CC debt, no car payments, etc.). We add ~1500/mo into our savings account. *approximate since DH has a 2nd job that is tip-based, but the least we've put into savings is $1100 for a month.

How much of that savings would you put toward a down payment on a house, and how much would you keep for an emergency fund?

After buying a house, our house payments (including taxes, insurance, etc.) will be pretty much equal to our rent, so we'd still be putting in ~1500/mo to savings. The only other upcoming major expense will be that within, say, 2 years, DH will need a new car, which we would ideally purchase outright but could finance some if needed.

 

 
Anne, mom to  
Report Abuse
Reply
Quote
12-17-2012 at 1:18 PM
polooo26
Not Ranked
Joined on 06-27-2012
904 Posts
17,256 Points
polooo26 is online. Last active: 05-20-2013, 8:43 AMBronze

20% of the home value.

If you put down less then you will pay PMI (Private Mortgage Insurance). Only put down less if the bank will let you do so and still avoid PMI

If you put down more than your e-fund will be that much smaller. You can always put down more later, but you can't always take it back. Unless you go the equity loan route.

By the way you talk I think you'll have enough for 20%
Baby Birthday Ticker Ticker 
Report Abuse
Reply
Quote
12-17-2012 at 2:53 PM
Prime
Not Ranked
Joined on 08-22-2012
1,002 Posts
19,565 Points
Prime is not online. Last active: 05-20-2013, 2:58 AMBronze

I would put down 20% and make sure you still have enough for a few months expenses in your emergency fund.  If you can't do that now then I would wait until you save enough for it.

Sounds like you two are in a good situation though.

 
Report Abuse
Reply
Quote
12-17-2012 at 5:17 PM
heyitsme
Not Ranked
Joined on 02-19-2007
5,097 Posts
8,832 Points
heyitsme is not online. Last active: 05-17-2013, 6:38 PMSilver
Prime:

I would put down 20% and make sure you still have enough for a few months expenses in your emergency fund.

I guess this is my question. How many months' expenses should we have after downpayment/closing? 

Anne, mom to  
Report Abuse
Reply
Quote
12-17-2012 at 6:18 PM
Sisugal
Top 150 Contributor
Joined on 01-07-2007
19,331 Posts
5,057 Points
Sisugal is not online. Last active: 05-12-2013, 8:53 AMPlatinum

Keep at least 6 month's expenses in an emergency fund and then plan to put down 20% of your house downpayment.

Remember that your utilities will be higher in a home as well as home maintenance, repairs, decorating, and miscenlleous items you need with a house.

After 6 month's expenses, and house DP, set up a seperate account for saving for a new vehicle.
 
Report Abuse
Reply
Quote
12-17-2012 at 7:08 PM
ChristyD6
Not Ranked
Joined on 10-25-2010
2,434 Posts
47,334 Points
ChristyD6 is not online. Last active: 05-20-2013, 6:32 AMSilver
I agree with PP do 20% if that leaves you with around 6months of expenses. I wouldn't put more down even if you could because interest rates are so low right now. You can always add a little to your payment each month if you find you have extra money.
Baby has some long legs! BabyFruit Ticker 
Report Abuse
Reply
Quote
hot topics

"When did you start feeling married?"
MindyMWM2012 on Married Life

"Do you have joint or separate bank accounts?"
JustinandHaley on Money Matters

"Severe problems with the in-laws. Help!"
epco33 on Relationships

search boards

choose another board

most active posters
sunlavende...
927 posts
BayleighPa...
905 posts
kamakaziar...
486 posts
minicheezb...
427 posts
sheacox
378 posts
Nest Cayla
356 posts
*Mrs*Rohrb...
247 posts
Love4Labs3...
204 posts
jertie
102 posts
KimberHill...
68 posts

connect with these online Nesties
jenny5o5 Deblondie1
LoveWillerson mnbv9502!
sunnygirlfriend Cathyl7910
Kelly1109 CnAmom
caladpi02 Stasi
snowgirl427 emeraldanchor
meaknigh EmpireMomof3
NastyAnnie Aknight1986
classybride143 fitzpemberley
jfresh KEK1025
Pandril19 adorebella
neurotrauma12 kread8
LCass polooo26
Jojo714 dedeekay
JayandEmm suzyq7896

The Nest Obsessed
In a decorating rut? Check out our new blog with daily tips and deals!