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To buy or not to buy a home...
My husband and I are in our late 30s, no debt, no kids, have emergency savings, and enough saved to buy a home including the added costs. The rent is also the same as the mortgage. We're both educators for middle and high school and plan to stay in the area for a while. We do have parents who are getting older and do not live near us. In the back of our minds we do think about moving closer to them, but I'm not sure how realistic that idea is. But the issue is that my husband doesn't think now is the time to buy. My thinking is more along the lines of "we're ready to buy so why not"? Better to start early to build equity if we can. Mortgage rates are low too. What do you recommend I do?
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Sounds like you are ready to go, but maybe your husband nervous about making this big step? That's what it sounds like. There is never the perfect time to buy if that's what he's hoping for. But mortgage rates are really low so that is on your side. Also I don't like to see buying as an investment, so ultimately it has to be when you both are ready for it. Not sure my comments help here but wanted to share my first thoughts on this.
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Maybe you can get preapproved for a mortgage and casually start looking? If you have time on your hand to convince your husband, seeing potential homes may change his mind? If he is nervous about buying (which is totally normal btw!) ease him into it. Visualizing a life in a new home by actually visiting homes can work. Getting familiar with your area through open houses or places like Redfin.com could help if you haven't already.
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@Vanessa514 We're tried online open houses, but not in person. I don't think it will convince him! But, now I wonder more if I should be convincing him...oy!
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@Hannah898 congrats for having so many of your financial ducks in a row! Reading your question, I wonder how much of your husband's reticence doesn't have anything to do with actually buying a house? My suggestion is to have a conversation with him about anything that may be scaring him away from owning vs. renting. Whatever worries he is bringing to this decision won't disappear even if you convince him to buy a home! If it does turn out to be purely financial, rates are almost certainly going to rise later this year or next, making your payment higher. Of course, higher rates tend to depress buying, Let us know how this unfolds!
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@Ilene795 You make excellent points!! Your comment about his worries not disappearing even if we buy is something I hadn't heard. It's really frustrating for me. I'm like a rabbit in a race (generally speaking) and he's a turtle... always had been always will be. I will surely share how this all pans out!
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@Hannah898 I'm rooting for a good outcome!
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@Hannah898 great question! Agreed with @Ilene795 that understanding the underlying worries your husband has is important. Another key step is to talk through feasibility/timeline of moving closer to your parents. If you realize that's something you want to do soon (i.e. in the next five years) then the significant costs of buying and selling a home may not be worth it. However, if you're committed to staying long-term (5+ years), I agree with @Terry846 that now is an excellent time to look given historically low mortgage rates. NerdWallet has a good buy vs. rent calculator that can help you understand (at a high-level) how long it may take you to earn a positive return on buying a home.
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@Vineet892 That's a really awesome idea to consider moving closer. If only our jobs were portable. I think part of the worry on his side his parents for sure, and he is one to be extremely conservative and internalizing, so I need to almost pry it out. We'll see how this unfolds, and I will try to behave and keep it calm. Thanks for the calculator. It's bookmarked!
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