Wednesday, October 04, 2006

5 minutes

We're thinkiing of buying some land, only we have no downpayment and we can only get a loan for 70% or so of the value of the land if we get a land loan. So we're looking at using some equity and getting a 2nd mortgage to pay for the land, plus roll in teh HELOC balance & a CC. We've got a GREAT deal on our 1st mortgage 5.5% interest, payment is $730 a month (including PITI). 2nd loan would be for $13,000 less than 1st and only 15 years instead of 30, plus interest is 7.9%. Payment is $816 a month. That just weirds me out almost too much to do it. Once you roll in the payments to the other things, we're around the $500 a month we were willing to pay for the land, but just seeing the number is freaky. Then we had AFLAC here today to get 'that insurance that pays when you can't work" and I had to figure out how much coverage we wanted and adding that $800 into the 'must pay' column totally freaked me. I know people pay $1500-1800 a month in mortage or rent around here but having a $700-800 one for 8 years has spoiled me.

4 comments:

glynis said...

I just HATE decisions like these. I'm sure you two will do what's best for your family.

Elizabeth said...

i am with glynis, i hate trying to make those kinds of decisions! and we are spoiled by a relatively low mortgage,too, so i would definitely freak out...

good luck!

loonyhiker said...

Thinking about owing money makes me break out in hives! But I say go for it if you can afford it. Life is too short and if you really want something go for it.

carinc said...

We bought land once - don't know your situation but the landowner was willing to hold an interest only loan for 5 years (with ballon payment due then). This gives you time to decide what you want to do with the land (build, sell, etc.) as it is yours. Plus the landowner gets to make some interest rates better than what's at the banks. Just another possibility to ease your monthly woes. I worked well for us.