patrick.net

I am renting and the calculator says it's better for me to buy in my situation.

Briefly, I am 39 yo, a renter, make $60000/yr, rent for $1300/mo, and I am single (so I use the smaller standard deduction, which makes mort deduction more in my favor, I think???). Am in rural California.

I have NO debt of any kind!

Anyway, I have $250,000 saved. $100,000 is in cash, the rest is in a retirement account.

How much do you think I can afford? I am afraid to ask a realtor for a referral to a broker because then they will bug me with houses I am not interested in. I just need a ballpark. I don't want to buy anything more than $300,000. Do you think that is reasonable? I have found that prices are falling all the time here, and think I could get something closer to $200,000.

Also, I found several Fannie Mae HomePath homes. Is it better to put down the minimum 3.5%, even if you have more? Just in case the unthinkable happens, so you don't lose your savings? Or put down more? There is no PMI either way, I don't think...

Also, would you live closer to where you work, to save on fuel (diesel is $4.47/gal where I live)? I own my own business, but can't write off driving to work. But prices for homes in town seem to be more. I would prefer the lifestyle 10 miles out of town better, with the bigger properties, but worry that fuel will keep going up. What do you think?

Finally, there is a house I'm in love with that was listed @ $485k in May 2010, but is now $279k. That's 43% less. Would you pull the trigger? I did the historic P/R ratios for my area and it seems we are back to 2002 around here.

I don't care too much about negative equity because I think I can afford the place, and just want a place to live at this point because my rental is terrible, and my life is very bad because of it (friends do not want to come over to visit, etc.). I will live here long term, I hope.

Okay, thanks for reading, and thx in advance for any advice!

Sean

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