Our closing is set for Friday and we’re moving into our house this weekend! Can’t believe we’re finally to this point.
A few years ago when we were kicking around the idea of buying a house, we didn’t have enough to put 20% on anything. The PMI would have been $60 or so per month. I was curious about how much it would have been if we had to pay PMI right now for a similarly priced house, and I was surprised when the lender told me we would have been in the $105-$145/month range depending on the type of loan we obtained (an FHA loan would have had a higher PMI premium).
YIKES. I guess that’s what happens when there are gobs of foreclosures around the country — Private Mortgage Insurance premiums go up for everyone. The whole point of PMI is to protect the lender in case of default, so yeah. There ya go. You can still deduct PMI on your federal taxes I believe, so that takes some of the sting out.
Still, if you’re paying PMI, I think it makes sense to eliminate it as quickly as possible.
Our monthly principle + interest + taxes + insurance + HOA is about $70ish more than our current rent + insurance. We’ll have higher utility costs and more utility items in general, of course.
Oh, and maintenance costs. Yep, already paying those. Getting the driveway sealed next week. Had the deck stained while a paint crew was already out at the house. Getting the HVAC seasonally serviced. Hopefully taking care of these things now will prevent a costlier repair in the future.
We lived in this apartment for a little more than three months. Even though this apartment has plenty of problems and is an annoying place to live, I’m glad we did the month-to-month thing while we got settled in Indy. If we rushed ourselves and tried to buy a place immediately upon showing up in town, I know we would have made a mistake.
We probably would have picked a house in an entirely different part of town. It probably wouldn’t fit our long-term needs as well. I am so thankful that we rented for a short time so we could spend time in various communities and figure out what we wanted here. Some people can make a quick decision and buy a house over a weekend, but we just aren’t able to do it that fast.