Random
April 17th, 2009
I’ve had a cocktail (one, but strong), a busy week, and a keyboard at my fingertips = New Blog Post
1. House
We are seriously considering owning a house. With the $8k you get for free, Cleveland being recognized as the 2nd best housing market in the US, and over half a dozen bank managers with access to the best mortgage rates in the industry right now, it appears the time is right. We have a few things that make it tough though:
1. Student Loan debt. Mine is about $25,000, Lindsey’s is around $90,000. That’s not good.
2. Duration of Ohio stay: As of right now I think we’re both rather committed to staying here for about 5-7 years. Does that short staying time mean buying a house will pay off? We think so, but it’s difficult to read the future.
Definitely a tough decision, but I would like to get pre-approved for a loan this week and begin the process ASAP so we know what we’re approved for and can begin what will likely be a long process.
2. Easter.
Easter was fine, but honestly didn’t really feel like Easter, except I could drink soda. During the holidays Linds and I find ourselves randomly going through our phones either texting or calling relatives to say “Hi” and that we miss them. It dawned on me today that we’re very near a full year since we’ve been home last. I was talking to one of my banking partners and he asked when the last time I saw my parents, and I thought it’s been very long since I’ve seen most of them. Sad. We are checking what we can get away with as far as a trip home in the somewhat near future. We are thrilled to be hosting some friends over the summer: Sue and kids (Brenna??), Rick/Missile and spouses, and of course Tony we hope for either the full summer or at least a few weeks. I don’t believe anyone else is planning on coming out at this time, but let us know when so we can plan accordingly.
3. Work
Work for Feb and March went amazing. I was corporately recognized as the top rookie (first year) performer in the company for being 190 and 210% over quota. Unfortunately, this month I’m slacking and momentum is huge in sales, so I’m eagerly awaiting the next wave to get back to where I belong. With tax season over, I’m look forward to meeting with new CPA’s and buying them breakfasts/lunches/random food since they love that kind of stuff. My job so far has been very challenging, scary, and yet rewarding.
4. Lindsey
Lindsey has some crazy ass stories from work. Honestly, if you’re sensitive, you’ll cry listening to just about all of them, but for me hearing them I’m glad Linds is making a difference in these families lives by helping solve these awful crimes and putting these horrible people behind bars forever. I have gotten to know many of her colleagues and even been joining one or two of them for some pick-up basketball games.
5. Marathon
This weekend I run 17 miles. I have been running 4 miles every other day and racing against a clock. I regretfully haven’t beaten the 30:00 mark yet, but my goal is to break 28:00 at this time (before training my goal was 24:00 but that ain’t happening). I have heard rumors of several family members who happen to be training at the same time. My plan is to run the Cleveland, keep training, and then run the Twin Cities Marathon with I believe: Dad, Molly, Britty, Erin, and Jon Faletti. I think that would be awesome, Dirk just told me about Erin, Jon and Britty, so I haven’t had that confirmed by them yet. Miles, are you in?
6. The End
Entry Filed under: Uncategorized
9 Comments Add your own
1. Tony | April 17th, 2009 at 10:03 pm
Who is this Tony guy visiting you this summer? Sounds like a cool cat. Meowww!
2. Holli | April 18th, 2009 at 2:33 pm
From what I’ve been told, if you get a $100,000 loan, your monthly payments are on interest alone for like the first five years. So you’d want to be sure you’re going to stay for five years, to break even when selling the house.
Anyway, we’ve been preapproved but aren’t house shopping until I have employment. But it’s good to know where your range is for when the time is right. Make sure you get the monthly payment info (which will depend on the property tax for each house). I’ve found that some nicer houses are cheaper in the monthly payment than another house at the same price because of the taxes. The bank telling you they can loan you $150K doesn’t tell you much about your monthly payment on a house that much unless you have a house in mind and know the taxes.
The $8k sounds nice, but if you don’t find the right place or it isn’t the right time, it’s not worth it. Otherwise, good luck in your hunt!
3. Tony | April 18th, 2009 at 3:37 pm
Nice advice Holli. I feel smarter today.
4. mom | April 21st, 2009 at 2:31 pm
you didn’t ask if I was running!
5. Dan | April 25th, 2009 at 1:18 pm
I know I’ve talked to you about buying a house before, but I just wanted to reiterate what I mentioned before.
Holli is right about the taxes part. That is an important thing to factor in. Also, you’ll most likely have to pay for Mortgage insurance as well. This is something you have to pay if you don’t have a 20% down payment. And you continue to pay this until your equity in your home is above 20%. Unless you get some sort of ‘interest only’ loan (which I would avoid like the plague), not all of your monthly payments go toward interest. However, it seems like that because about 80-90% of your mortgage payments do go toward interest.
This, coupled with a small down payment, is why it is so easy to get ‘underwater’ on a mortgage if housing prices keep falling. This is why you should stay in a house for at least 5 years. That is generally enough time to pay off several thousand dollars worth of the principal. If your home appreciates at all (and in most normal environments they do), then when you sell the home you should get more than your down payment back. This is why the $8000 the government is handing out is so valuable. You can (should!!!!) take that $8000 (or at least most) and put it toward the principal of your loan. That will make the interest part of your payments lower, which will help you build equity in your home faster. Plus you essentially get that $8000 back when you sell and can use in toward your next house.
The smartest financial guy I personally know just bought a house in the Cleveland area. With the $8000, low interest rates, and the strong possibility of high inflation in the coming years, he said it is the best thing you can do with your money right now.
6. Tony | April 27th, 2009 at 12:08 am
Love the info.
7. david | April 29th, 2009 at 3:47 pm
houses are good because you can live in them. Discussion done.
8. m!les | May 2nd, 2009 at 2:49 pm
I agree with David. If houses could only be used to keep ketchup cold or to store old carpet, they wouldn’t be nearly as valuable. Why pay so much to store old carpet?? Make sure that whatever house you buy, you LIVE in. That’s the key.
9. Amy Jo | May 5th, 2009 at 8:41 pm
Dustin and I just bought a home in Ortonville. It’s awesome!
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