$1.70 an hour... every hour... for the next 30 years...

So anyway, I’m now officially a homeowner. Closing was on Thursday, I signed a bunch of paper, gave them a bunch of money, and the rest, as they say, is history.

My payment is $1,225/month, including taxes and insurance. Which works out to approximately $40/day, or around $1.70/hour, every hour, for the next 30 years of my life. Puts things into a different perspective when you think about it that way.

The place needs some work. The former occupants were pretty heavy smokers, which means that all walls and ceilings need to have the wallpaper removed and/or repainted (you can tell where the cross was hanging on the wall in the master bedroom). The roof has about 2 years of life left before it will be in need of imminent replacement. The landscaping around the place leaves a bit to be desired. The deck in the back needs to be repainted. The hardwood floors on the upper level need refinishing. I could go on and on…

Thus far I’ve completely stripped the wallpaper out of the master bedroom and will be putting on a coat of primer on all of the bedrooms tomorrow. Painting will take place on Tuesday, floor prep will be Wedensday, and I’ll do put the polyurethane on the floors on Thursday. Then it’s on to the bathroom, then the kitchen, then the living room and dining room. I have to be out of my current place by June 30th, so sometime during the next 10 days I have to move all my stuff and clean the old place too. I think I’ll be plenty busy.

Many congratulations to you on your purchase and your new status! Here’s hoping you find the work you put into it rewarding, because it’s all yours.

I’m going to try very hard not to think about your financial calculations whenever I’m on the verge of becoming a homeowner, however. :smack:

Nah, fixer up, sell it, and do it again.

Congratulations! First thing is to set up the grill, so when you call everyone you know over for a work party you can feed them. :cool:

I hate painting, so I’ll usually find ways to avoid it if possible. I’ve found TSP works wonders on washing walls and stripping away even the smoke smell if there’s decent paint under all the grime. Might benefit you to try that in a room that would look okay, y’know, not the one with apple green and lavender polkadotted wallpaper.

$1225 a month? Wanna trade? I just closed last week on something closer to $3700 a month, but that includes “impounds” for property tax and homeowners insurance.

At least it’s really move-in ready, save for wanting to change the color of some walls. Right now, it’s all landlord white. Not for long…

sputter 3700/mo? That’s more than I make in a year.



30 years? Yep, that’s about the time it will take you to finish all of those DIY remodelling projects. There just always seems to be one more thing…

Congrats, by the way.

I’m sorry to be the one to tell you this but it will not be $1.70/hr for thirty years. Depending on the property tax structure, and insurance rates, it could increase every year. The escrow company will send you a notice once a year detailing each months expenditures and income if the numbers don’t extrapolate correctly for the next year, you escrow amount goes up.
Our property value goes up every quarter, according to the county, so our taxes go up too. when we first refinanced, our total monthly payment was $1103.01 It is now, two years later $1333.70. We’re thinking of doing another refi.

Boy ain’t THAT the truth. My FIL says: ‘Look around, if you can’t think of one more thing that you need to do around the house, sell it.’ I’m tempted.

Put a little bit extra aside every month and make some additional payments. You’ll have the mortgage paid off in much less than 30 years.

As Cuncator mentioned, even an additional $50 a month can save freakin’ years on your mortgage repayment.

engineer_comp_geek, at the moment, I’m pretty sure there’s going to be more then just ‘one more thing’ for the forseeable future… Every time I think about it, it seems like I add two or three more things to the mental list.

picunurse, you’re right of course, the monthly payment will probably go up as time goes by. Hopefully my income will go up at least as quickly as my house payment (wishful thinking, perhaps). However, I am hoping to find a better deal on my homeowner’s policy in the not-too-distant future. I got kind of a late start talking to insurance guys, so I pretty much only had time to talk to one.

Cunctator and kambuckta, that is the plan. Right now I’m hoping to do 1/2 a monthly payment every two weeks (timed on the same day as my paychecks), so that’ll give me two extra payments per year. Plus, as I have an 80-15 mortgage, i hope to pay off the 15 within 4-5 years, which will drop my monthly payments by $200ish per month.

I’m also going to have a roommate (same guy I’m living with now), who will be paying me $4-500/month (we haven’t finalized the amount yet). I’m letting him live there rent-free for July in exchange for some extra help doing remodeling work (painting, removing wallpaper, etc.), I figure it’s a good fair trade.

But if you aren’t paying off a mortgage you would be paying rent anyway wouldn’t you?

Also if property where you live is anything like it is here, over time you will earn more through property price rises. I bought an apartment for $114,000 back in '97 and sold it for $250,000 last year. After paying out the balance of my mortgage I still have approximately $150,000. All because I paid a mortage instead of paying rent.

Me too, that’s about what we are paying.

This is your home- not your house. Everything you do and improve is for you. You will love most of it- the payment is a drag, especially in the first few years. Put your life on hold for ten years and then you will be a property magnate.

Congratulations! :stuck_out_tongue:

Try a refi with no escrow next time.

Your monthly payment will stay the same over the course of the loan. Figure out how much your taxes and insurance will be for the year, divide that by 12, and put away that amount plus an additional $100 in savings. When taxes come due, you have the cash put in savings to pay it and your housepayment never goes up due to the mortgage company over or under estimating. Plus you get to keep whatever interest your money makes during the year, instead of the mortgage company profiting from it.

Aside from all the finance advice you got here, something to keep in mind as you gleefully send that check off each month is a small item called appreciation. Keep an eye on the selling costs of similar homes in your neighborhood, and watch your property value rise.

We’re in the process of having a house built right now. With the down payment we’ll make from the building equity in the house we’re selling, and the price increases between the time we signed our contract and the closing date, we’ll be about $150K paid off when we close.

Depending on your market look for the value of your home to increase anywhere from 4% to 8% each year.

GEEZ! I sometimes forget how cheap stuff is around here. I financed my home for 15 years, got a damn good rate at the time, and my house payment is $754 and change each month. In about 5 and a half years, it’ll be mine!

As to there’s always one more project, I’ll say AMEN to that. I had this house built and I’m still doing things to it. Right now I want to enlarge the kitchen and dining room real bad. Knowing me, it’ll probably happen sometime in the next couple of years. Heh! When it was being built all I thought was, I won’t ever have to change a thing cause it’s just like I want. Like a gay man won’t change his mind about paint, decor, etc. every couple years. :smiley:

If you want to have a happy figure, look at the appreciation in value each year with compounded interest. Your house will be making money for you round the clock, 365 days a year. Not to mention, some of your $1.70 per hour is being underwritten by the government. Not only that, it will put you over the threshold of itemization so now your state and local taxes will be underwritten by the government as well.

That’s right…for the first few years of your mortgage, you’re going to be getting ~10k/yr deducted from your taxes, along with the potential appreciation, and you’re making out just fine.